Market Close: Volatility prevails ahead of F&O settlement..

Indices toady witnessed yoyo session with no clear direction through out the day. Lack of support from the global front was partially responsible for the subdued start. Cautious approach by the investors ahead of the derivative settlement added to the chaos on the bourses. However, some index heavyweights were able to attract buyers in the final trading session. The RBI?s caution regarding the foreign investment in the holding companies of Indian banks kept the Banking sector under pressure. Rupee depreciation was unable to ease the pressure on the technology counter as the sub prime continued to haunt them. Selective mid caps were in action. European indices continued to trade in red.

Sensex closed higher by 77 points at 14919.19. It was helped up by gains in Hindalco (152.9,+3 percent), RIL (1884.25,+3 percent), Satyam (449.7,+2 percent), HDFC Bk (1147.5,+2 percent) and Infosys (1880,+2 percent). Restricting the gains were ICICI Bk (859.8,-3 percent), Tata Motors (663.05,-2 percent), Hero Honda (629.8,-2 percent), Ranbaxy (365.25,-2 percent) and ACC (1024,-1 percent).

Financial Technologies (FT) was the star of the day and ended higher by 10% for second consecutive day. Company has honed the technology for straight through processing. (Transaction handling). It is also the promoter of Multi Commodity Exchange in India's MCX which now has about 70% market share in the commodity exchange market. Our note on the company should convince you as buyers despite higher valuations. Do read it.

Himadri Chemical Industries Ltd, the flagship company of the Himadri group is into the manufacturing and marketing of Coal Tar Pitch and its derivatives like Naphthalene, creosote oil, naphthalene, anthracene oil, xylene, benzene and toluene. The Company also produces corrosion protection and manufactures coal tar based pipe coating products at Visakhapatnam. Himcoat Enamel, Himcoat Primer, Himtape and Himwrap are the products. The R&D capability of the company gives it an edge over the unorganized sector. Do read our note on the company to know more investment argument in favor of the company.

Everonn Systems India Limited (Everonn) is in the field of education and training. The company is fully integrated and offers a range of services like creating knowledge resources, designing and delivering the learning and training programs through the medium of computers and other resources. The company also sets up infrastructure and delivery platform for enabling the same. Content is the area where its arch rival Educomp Solutions out shines Everonn. We have covered both in our research. We find Educomp's business model more convincing but valuations are certainly not. Do read our notes for more insights.

Technically Speaking: Index was volatile as it made an intra day high of 14,952 and low of 14,752. Advances declines ratio was 3:2. Volume was pretty good at Rs.4,096 cr. Sensex has done today our expected target of 14950. We can expect some profit booking here and lower levels of 14670 are possible. Any move above 14950-14970 will take the Sensex to 15200.

But the pain is still not out. Subprime worries and political issue seems to be eased but they are not fully cured. Clarity will come with time till then wait.