Market Close: Mighty Bull enjoy's valentines day...

It was significant flying day for all the indices across the globe. The markets celebrated the Valentine day in the positive momentum. The overnight rally in US fueled the support across the globe, Asian markets ended strong. Nikkei ended up by 4.27% and Hang Seng closed up by 3.68%. As result of this Indian indices recovered enormously after witnessing a bear session for last few sessions. The strong value buying in index heavy weights kept indices head-up for entire day. Sensex opened in gap up of 560 points and made intraday gain of 890 points. Strong buying was seen in most of the sectors like Power, Realty, Capital Goods and Oil & Gas cheered the day.

Oil marketing companies were in focus on the back of price hike announcement from the Oil ministry of Rs 2 per Lt for Petrol and Rs 1 per Lt for Diesel, but this was not certainly good for Cement, Transportation, Logistics and Tyre companies and also it will affect the inflation which is a concern under control. Markets remained steady in the flight ensuing uptrend sessions, neither climbing much higher nor losing strength. However towards the closing hour indices also witnessed a final flourish. Mid and small caps closed inline with the frontline indices. European markets trading in strong.

Sensex closed up by 817 points at 17766.631. It was helped up by gains in BHEL (2232,+13 percent), Rel Energy (1708.15,+10 percent), RCVL (609.75,+9 percent), Hindalco (163.75,+9 percent) and ONGC (1025.7,+9 percent). Restricting the gains are Infosys (1547.3,0 percent).

Jain Irrigation and Mekorot, the national water company of Israel signed an MOU to work together on water projects in India. The two companies say they plan to explore projects in desalination, water resource management, water supply, municipal water management and/or wastewater treatment and reclamation projects. Growing urban populations in India have made existing capacities of water treatment, waste water treatment and recycling inadequate. Mekorot is a leader in water resources management, desalination, wastewater treatment and effluent reuse, rain enhancement, water quality, water security and water project engineering. It supplies 80% of Israel's drinking water and 70% of its entire water supply, operating 3,000 installations across the country. Jain Irrigation has been involved in water distribution and water conservation in India for three decades. The company's customers include water utility boards, municipal corporations, contractors as well as farmers across India. This helps Jain Irrigation to get technology and timely execution at competitive prices. We feel in India under investment in this sector, this could be one of the vertical growth to the company. The stock closed up by 3% at Rs 649.

Blue Star announced the acquisition of Bangalore-based Naseer Electricals for a consideration up to Rs 42 cr including upfront payment and debt and escrow amount payable on fulfillment of certain conditions. The move will enable Blue Star, which is the leader in central air conditioning in the country, to deliver integrated mechanical, electrical and plumbing (MEP) contracting projects for the commercial building and infrastructure segments. Naseer Electricals is an electrical contracting firm with a turnover of Rs 107 cr (FY07) and a strong presence in South India. The current order book is approximately Rs 100 cr, majority of which is expected to be executed over a period of one year. With this acquisition, Blue Star gets capability to deliver integrated mechanical, electrical & plumbing (MEP) contracting projects for the commercial building and infrastructure segments. This is certainly good for the company; it can acquire south Indian market too. The stock closed up by 8%.

Technically Speaking: Market breadth was very encouraging and traded strong with an intraday high of 17,837 and low of 17,265. The overall breadth was in favor of Advances, while Advances stood at 2065 and Declines at 685. Volumes for the day were not encourging at Rs 5714 Cr. The Sensex likely to fill the gap of 18280-18480 before turning down again. Sensex Support lies at 17200 while the Resistance lies at 18400-18480 levels.