Market Close: global pressures not ignored this time !

The markets ended in red on account of selling pressure in large caps after it had a weak start following the Global cues in red. Asian indices were in deep trouble after Hang Seng closed down by over 5% (-1526 points) and Shanghai down by 2.5%,Hangseng was down on worries that rules allowing Chinese Investment into Hangseng were delayed. Subprime issues played over the minds of investors which saw selling. Amid the cautious atmosphere value buying was seen in midcaps and small caps indices. Small cap index was up by 1.07% and mid cap index was up by 0.367%. Auto, bank, oil & gas, IT stocks were down .European markets are trading in red too led by worries about the state of the US economy.

Sensex closed lower by 385 points at 19,590 levels. Supporting the indices were gains in Bharti Airtel (+5.60%), Cipla (+1.70%), NTPC (+0.85%), Ambuja Cement (+0.21%) and Ranbaxy (+0.10%). Restricting the gains were the losses in ICICI (-4.74%), ONGC (-3.72%), L&T (-5.27%) ,Maruti Suzuki (-2.58%), and Infosys (-2.53%).

The Capital Goods sector saw major weakness and also the Auto sector . Banks were strong in morning trades but they gave back most gains. However it was a day for the mid caps. The large caps saw contraction in valuations and the mid caps were getting rerated.

Solar Explosives exploded today and was up by (11.1%) at Rs 301. Solar Explosives Ltd has acquired a majority stake in an unlisted Company to further business interest. This acquisition is subject to all regulatory approvals and compliance. Solar explosive provides explosive solutions for mining activities including slurry Explosives. The company undertakes manufacturing of Detonators and Detonator components through its subsidiary. The company is the one of the largest manufacturer of Packaged Explosives in India with a Licensed Capacity of 2 lac tonne Explosives (Bulk and Packaged), 140 Million numbers of Detonators and 20 Million Meters of Detonating Cord. Solar explosive is the market leader with a market share of 25% compared to 15% of Indian Explosive Ltd and 9% of Gulf Oil Corp. Solar has been looking grow inorganically and is in discussion with a couple of companies.We had Wow call on the company and that delivered fantastic gains in just a month.

GEI Industrial System was up by 10% at Rs 138. Net profit of GEI Industrial Systems rose 30.18% to Rs 2.20 Cr against Rs 1.69 Cr for 2nd Qtr 2007 on yoy basis. Sales rose 55.17% to Rs 34.82 Cr against Rs 22.44 Cr for 2nd Qtr 2007 on yoy basis. GEI Industrial Systems (GEI) formerly known as GEI Hamon Industries, is a specialist in heat transfer technology. It designs, engineers and lays condensers and other auxiliary engineering services for power (combined cycle steam- and gas-turbine-based, nuclear, hydroelectric, and gas- and diesel-engine based) plants, petroleum refineries, LNG terminals, petrochemical and chemical plants, oil and gas fields, offshore gas processing platforms, CNG filling station, electrical locomotives, fertiliser plants, metallurgical industry, cement plants and power utilizing equipment.Wow call on GEI was booked partially after it delivered 15% gains in just 2 trading sessions

Technically Speaking: Sensex is now in pullback mode. 19430 is a support of sorts however the big support is at 19200. Advance Decline maintained a balance of 1:1 almost with advances marginally higher than number of decilines The Volumes were good at Rs 9000+ crore for the BSE. Sensex resistance is at 19900 and that would need to be crossed. This week is Diwali and investors are waiting for a big Diwali Gift. The talk ofthe town is that Sensex will do 21000 this week. We have seen such kind of action earlier and such action will not suprise us.