Markets had a cautious play ahead of the FnO expiry tomorrow where rollover is expected to be smooth. After a decent gap up start market traded ranged till the mid session due to lack of momentum and then slowly lost its grounds on profit booking. Metals, Oil and gas and Power were among major sectors to witness selling pressure, while Auto gained some strength. Buying momentum was high in newly added strips list under FnO trade which kept midcap space in action and outperformed the front liners. Media stocks were also in limelight like PVR, Adlabs and Cinemax. At the final hour of trade market slipped significantly to close in Deep red. The weakness in market was in line with the trend in Asian and European markets.
F&O turnover for the day was strong on one day ahead of expiry and rollover has been seen good in Banking space followed by the Pharma sector. Overall the rollover is smooth with 50% positions compared with the last month.
Sensex ended down by 189 points at 18938.86. Weighing on the Sensex were losses in Hindalco (184.35,-4 percent), TISCO (818.7,-3 percent), ACC (1075.25,-3 percent), Rel Energy (1704.05,-3 percent) and Hero Honda (708.9,-3 percent). Losses are restricted by gains in Maruti (966.7, +3 percent), Bajaj Auto (2727.8999, +3 percent), BHEL (2724.55,+2 percent), Guj Ambuja (150.65,+1 percent) and Tata Motors (720.5,+1 percent).
Mold Tek Technologies closed higher by 13%. Mold-Tek Technologies Limited (Mold Tek) one of the leaders in packaging and an emerging player in the Structural Engineering KPO Services segment posted good numbers for the 2nd Quarter ending September 30th, 2007. Mold Tek managed a growth of 12 % yoy with total turnover of Rs. 28 cr as against Rs. 25 cr during last year. There could be some triggers from a probable acquisition on cards which today stock spurted up in the market today. The company rides on high value billing with a polished front end and a low cost backend. This gives good support for the company to lead in the space. We have detailed research note. Do have alook on this for more details. We remain positive on this business.
Solar Explosive showed good strength and kept its momentum. Solar explosive provides explosive solutions for mining activities including slurry Explosives. The company undertakes manufacturing of Detonators and Detonator components through its subsidiary. The business is good with strong barriers to entry and Solar has the edge with its high market share and explosive experts. This as an investment with a long term perspective is a good idea. The mining policy coming up in the later half of the year would eventually help unlocking the big potential of this business. Do read our research note for more details. We had Wow call on this one which delivered good returns in short term.
Technically Speaking: Sensex opened in green but slowly slipped and ended weak in red. It made intraday high of 19,317 and days low of 18,884. Volume was good at Rs 7,435Crs. The breath was in favor of Declines, where Advances stood at 1282 and Declines at 1490. Sensex has closed the day at weak, as we were expecting a weak expiry. Traders are advised to take long if markets fall further tomorrow. Supports are seen at 18715 and 18500. Resistance is expected at 19360.
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