Market Close: Still Respecting the support

Markets closed marginal in green after it opened with a 300 points gap up and overall day swing of 500 points. Indian indices had a good start following positive global cues. But, later as usual profit booking was seen and indices slipped in red. Mid caps were a bit weak but small caps once again outperformed the large caps. FMCG and Metals were among the major gainers. Profit booking witnessed across the sectors led by the Oil & gas, Pharma, Realty, Banking and Auto. Earlier on the day the support from the European Central Banks (ECB) helped the US indices end in the positive territory after ending in red for 2 consecutive trading sessions. ECB infused lend $ 500 bn to the commercial Banks and other prominent financial institutions. Markets turned choppy in late trade as as selling pressure pushed into deep red before ending with modest gains. European indices are trading in red.

Sensex ended up by 20 points at 19099.721.It was helped up by gains in Rel Energy (1882.6,+4 percent), ONGC (1180.5,+3 percent), ICICI Bk (1161.05,+2 percent), Infosys (1638.1,+1 percent) and TCS (1021.35,+1 percent). Restricting the gains were ACC (1030.65,-3 percent), Dr Reddys (697.15,-3 percent), HDFC (2743.6001,-2 percent), Maruti (995.3,-2 percent) and SBI (2258.3,-2 percent).

Gillette is the largest and legendary player for shave blades, razors and shaving products over the globe. The company has premium priced 7?O clock and mid priced Wilkinson Sword brand in the double edge blades segment. The company is also into Oral care with the brand Oral B. This includes Toothbrushes, floss etc. Portable power (Dry Cell) is the third segment and it is not a big strength for Gillette with brand 'Duracell', since its expensive than the zinc batteries. India has the second largest population in the world and around 50% of the population is below 25 yrs. This opens a huge market for FMCG products particularly with good brands. Also having the distribution backed by P&G, Gillette is well placed to leverage this opportunity. Company is set for high growth potential. Due to its premium brand the demand is set to increase from the population which its aiming at i.e Between the ages of 15-35. This is nearly 50% of the total population. We bang on this and have a positive view on the stock. We have a detailed note please do have a look at it. The stock rallied for the day.

Mold-Tek Technologies Ltd is one of the leaders in packaging and an emerging player in the Structural Engineering KPO Services. The company is in the process of de-merging its KPO business from its Plastic packaging business. The de-merger would result in better focused business and valuations. The demerger to bring in value unlocking. We are positive of the KPO and expect good numbers in coming years... We have a note here too.

Technically Speaking: Market breadth remained positive through out the day but the trend remained choppy with high volume. It made intraday high of 19,398 and days low of 18,886.Sensex churned good volume at Rs 8,004 cr. The breath was in favor of Advances, where Advances stood at 1861 and Declines at 1016. Sensex resistance seen at 19200-19375 and support lies at 18880..18515.