Market Close: 17k ..So near yet so far..

Cautious trade coupled with weak global cues witnessed a volatile trade before a positive close. RIL supported the intial rally but succumed to profit booking soon as indices traded in a narrow range. Mid Session witnessed a bit of selling pressure as Heavyweights like SBI, MNM and Baja Auto slipped dragging Indices over 100 points. Buying in HDFC Bank, Bharti, HUL during the final hours of trade bailed out Indices to close in green. Banking stocks ended in red after the cut in the interest rates was announced by a few big private players. Continued Rupee appreciation made drove away buyers from the IT counter. BPCL continued to attract buyers even after the management declined any gas or oil discoveries in Assam. Reality, FMCG and Auto counters failed to attract buyers. Small and mid caps also witnessed shyness. European indices continued to trading in red teritory.

Sensex closed higher by 54 points at 16899.539. It was helped up by gains in HDFC Bk (1397.7,+4 percent), Hindalco (167.5,+3 percent), Bharti Tele (964.8,+2 percent), RIL (2403,+2 percent) and Ranbaxy (424.05,+2 percent). Restricting the gains were Hero Honda (743.25,-3 percent), Bajaj Auto (2518.5,-2 percent), SBI (1803,-2 percent), Wipro (435.55,-2 percent) and L & T (2865,-1 percent).

A consortium of state-owned Bharat Petroleum Corporation (BPCL) and Premier Oil of the UK reported that they struck what is believed to be India's largest onshore gas discovery in Assam. BPCL sources mentioned that the initial estimates have been pegged at 8-18 trillion cubic feet (TCF) of in-place gas reserves. The find is in the Cachar area, about 320 km from capital Guwahati. But, later in the day BPCl Management denied any gas finding's in Assam. Intial the stock rallied over 18% with the gas find news but later news falshed in the market the stock slipped to end 7% up.

Greenply is a well established player in interior infrastructure industry. The Company manufactures Plywood, Laminates, Veneer and Particle board. Plywood contributed 51% of the revenue while laminates 49%. Industry growth in plywood and laminates is 10-12% however company has exceeded the industry growth. This industry is dominated by unorganised sector but dynamics seems to be changing now. Do read our note to know how Greenply can counter the unorganized sectors. The stock rallied ahead of its results is what we assume as it close 6% up.

Technically speaking: Volatile session for the day as indices made intra day high of 16,928 and low of 16,677. Volumes for the day stood at Rs.7,500 cr. Uptrend could be maintained and 17,000 levels could be breached if the support levels of 16,690 are maintained till the F&O expiry.