Supportive global cues coupled with some short covering were the primary reason for the Indian indices to trade in the positive territory. A rally was seen across the Asian with most of the markets ending up over 3% after US markets run up on the back of expected Fed cut in the next meeting. The follow on rally from global markets pushed Indian indices to start gap up and traded higher for major part of the day but slipped in the last hour of trade. Volatility crept in as F&O expiry ended today. Selling was seen in select Midcaps but overall rollovers positions have been good for the expiry. Market wide rollover was over 70% for November series expiry. Market ended down over 300 points from day's high after some periodic attempts of profit booking seen at the higher levels. The major gainers for the day were on the Auto, Banking, Reality and Consumer durables sector. On the losing side were Power, Technology and Metal counters. Steel companies slipped in the negative territory after the Govt made ISI certification mandatory for all the steel manufacturers. European indices managed to hold on in the positive territory post a stable start while Asian indices closed a mixed bag.
Sensex closed higher by 64 points at 19003.26. It was helped up by gains in HDFC Bank (1677.15,+4 percent), Hero Honda (733.9,+4 percent), ICICI Bank (1162.2,+3 percent), Maruti (990.45,+2 percent) and RIL (2818.3999,+1 percent). Restricting the gains were Ranbaxy (378.95,-3 percent), Rel Energy (1663.7,-2 percent), TISCO (802.15,-2 percent), RCVL (665.05,-2 percent) and Hindalco (180.9,-2 percent).
Educomp Solutions Ltd rallied and closed higher by 5% after the company informed that it would foray into formal school management with launch of The Millennium Schools. Millennium Schools will be powered by the Millennium Learning System (MLS), India's first fully integrated learning delivery system for Schools developed by the Company. Millennium School would be set up across Indian cities by independent trusts and societies, The Millennium Schools will incorporate unique blend of global best practices in education and inherent strengths of Indian education system with the added advantage of MLS, the Company's cutting-edge proprietary learning system for schools. Educomp has plans to open school nearly to 100 by 2009. Content seems to be the key success factor in this business and Educomp is well placed there. Higher Valuations seem to be the only reason why we are not the buyers at the moment. Do read our note on the company to know other investment rationales in favor of the company.
Solar Exploding continues and ended higher by 10% after report on the company was issued by a major broking house with Buy recommendation. We had discovered the story much earlier and we continue to be positive on the company. Core business of the company comprises of providing 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. Numbers for the September ended quarter were exceptional as well. Solar can be considered as an investment option for a long term point of view as per our analysis as well. Do read our note on the company to know why.
Technically Speaking: Sensex traded between an intra day high of 19,267 and low of 18,930. Declines outnumbered advances marginally as there were 1,300 advances against 1,451 declines. Support lies at 18870 and 18500 levels. Resistance is at 19360 and 19525 levels. Volume of Rs 7,596 cr was churned through out the trading session.
No comments:
Post a Comment