Close: a bounce off the lows..but there is still caution in the air !

After two days of carnage the market showed signs of recovery today. But in the early sessions of trading the market traded volatile swinging between the negative and positive territory. The market looked dangerous to enter as there was heavy selling on one side while buying on the other came in spurts. Weak global cues added more fuel to it. Buying interest from the investors was seen in the later sessions as the index heavyweights saw some level of value buying. Some attempts to book profits at the higher levels were seen but then investors are now used to recoveries. The negative news has been digested. Reliance Communications, Dr.Reddy's and SBI led the rally on the Sensex. Asian markets ended mixed while Europe markets were trading in green.

Sensex closed up by 186 points at 13181.34. It was helped up by gains in RCVL (433.15,+7 percent), Grasim (2650,+6 percent), Dr.Reddy (792.5,+5 percent),SBI (1230.9,+4.3 percent) and Bharti Tele (600,+6 percent). Restricting the gains were ONGC (787.9,-2.2 percent), HLL (219,-2.1 percent), Hero Honda (711.9,-2 percent), Tata Steel (434.55,-1.3 percent) and Cipla (238.05,-1 percent). topnew.gif (1104 bytes)

Zee to get delisted; Century Textiles in action; Markets still not out of woods! Performance was good.

Zee Telefilms the media giant has clarified the proposed demerger of its news and cable businesses. The shareholders of Zee as on the relevant record date would get shares in three separate companies which would be independently listed on stock exchanges. They are Zee Telefilms Ltd (to be renamed Zee Entertainment Enterprises Ltd (ZEEL), Zee News Ltd (ZNL), Wire and Wireless India Ltd (WWIL), ASC Enterprises Ltd [to be renamed Dish TV India Ltd (Dish)]. Shareholders of the company would receive 45 shares of ZNL and 50 shares of WWIL for every 100 shares held in the Company. Both companies would be listed independently. Listing is likely to be in January 2007. Demerged ZTL (including the Direct Consumer business undertaking) would continue to trade on the stock exchanges. The stock was up by 7% while its peers UTV (8%) and NDTV (up 4%) also closed strong.

Century Textiles & Industries reported that in the voluntary retirement scheme (VRS) which was introduced at its Mumbai textile mill has been accepted by 6300 workers of total staff strength of 6600. The company in order to sustain viability on a reduced scale initiated reduction in the manufacturing operations at the mill in Worli Mumbai, due to which the operations have become almost stagnant. The stock ended 8% up. Clearly there are plans for the property there. Its 65 acres of land and valued at Rs 1000 crores we believe. Could be more if developed for commercial purposes.

Technically Speaking: Market was in a volatile mood with no clear direction where it was headed all day but in the last session buying interest by investors saw the market close in the positive territory up 186 points. . Sensex rallied between the channels of 12830 - 13223 level. However, the breadth had been in the favor of Advances as they were 2.19 times the Decliners. If the market sustains 13200 levels we could see more of long positions but if it fails then level of 12600 could be seen.