Market Close : Positive start for the week but.. with low volumes !

It was a good day for the markets with a firm start but there was volatility during the day. There was pressure seen in IT and Oil & Gas stocks. Cues from Asia were mixed while European market supported the markets at higher levels. FMCG and Metal index lead up over 1.5% holding the market in green. IT stocks slipped as rupee conrinued to trade strong at Rs 40.58 /$ levels. Automobile stocks witnessed fresh buying on the counter. Midcap index and the Smallcap index ended the day up by 1%. The Market managed to bounce back after a volatile session in the last two weeks which gives good support for the rally. Asian indices closed higher.

Sensex closed up 149 points at 15017 helped up by gains in HLL (203.55,+4 percent), Tata Motors (692.2,+3 percent), Cipla (190.9,+3 percent), Guj Ambuja (129.95,+3 percent) and Bajaj Auto (2380,+3 percent). Restricting the gains were TCS (1135.05,-1 percent), Satyam (476.75,-1 percent), Hero Honda (657.5,0 percent), Infosys (1951.95,0 percent). The volumes were low and that is what is the disappointment. Low volumes does not give conviction and indicates lower confidence.

Hanung Toys & Textiles Ltd. a well-known name in the toys market performed well in the market after some reports says that company is in talks with home furnishing retailer IKEA to supply toys and kids furnishings worth Rs 500 Cr. IKEA already accounts for a fifth of Hanung's sales. Hanung reported better than expected results for the quarter ended June 2007 with revenues up over 50% YoY driven by toys Hanung's current order book stands at Rs 400 Cr gives it good visibility. The stock ended up by 9% helped by the order talks. To know more on the company do read the detailed note on the site.

Mahindra & Mahindra intends to ramp up the production of passenger vehicle 'Logan' as well as more than double its dealer network by October-November this year to meet expected surge in demand during the festive season. Currently the company manufactures 2,800-3,000 units per month and plans to increase it up to 4,000 units by the festive season of October. The Logan, which is the country's first wide-body car and which emerged as the largest selling sedan in July, will now be marketed aggressively in the non-metros also. The company has planned aggressive advertising for the Logan and has outlined an ad spend of around Rs 12 Cr to 15 Cr The stock of M&M ended up 3% along with its peers Tata Motors was also up 3%.

Technically Speaking: Market started the day on a firm bull back note taking cues from its peer. Sensex had a north bound session today as it made a high of 15044 and low of 14869 with the Advances out numbering the Declines. The advances stood at 1915 against the declines of 807. Volumes were good as the market churned Rs 4126 Cr. Market support is seen at 14908 level while resistance at 15083 level.