Market Close: Struggling to cross 14k !

After yesterday strong close, market looked good to carry on the trend however started the day on a low. But it crossed the 14k mark thereafter. Not much support was seen from the global cues as the Asian markets traded mixed in the early sessions but soon lost grounds and ended in negative territory while European indices also followed them. Sensex had a volatile day with no clear direction to where it was headed. In the mid sessions the IT stocks started to feel the brunt of profit booking as the rupee continued its upward march and was quoted at 40.83 against the Dollar. However, some dollar buying by oil refinery companies in later stage to moped up dollar at lower levels.

Profit booking was on the cards for most of the sessions as the market nudged itself at high level. Market saw some patchy attempts by the bulls to push the indices into the positive. Sensex remained in the red zone for most of the time. Selective Banking and Steel stocks displayed strength while selling pressure was seen across the board with selective Pharma and Engineering stocks were out of investors favor. Selective Mid caps and Small caps have did well.

Sensex ended down by 37 points at 13929.33. Weighing on the Sensex were losses in Satyam (452.15,-2 percent), ONGC (890.45,-2 percent), Wipro (534.1,-2 percent), Infosys (1972.55,-1 percent) and RCVL (475.3,-1 percent). Losses were restricted by gains in BHEL (2518.8999,+3 percent), ICICI Bk (887.1,+2 percent), SBI (1226.65,+2 percent), HDFC Bk (1010.15,+1 percent) and Hero Honda (697.8,+1 percent).

Refrigeration and Cooling Equipment company, Voltas ended the day up marginally after reporting a 405.30% growth in net profit in the last quarter ended in March 2007 to Rs 120 crore compared with net profit of Rs 24 crore in the previous year. Sales rose to Rs 721 crore, from Rs 514 crore. Net profit jumped to Rs 186 crore in the year ending March 2007 from Rs 70.5 crore in FY 2006. Sales were up to Rs 2400 crore from Rs 1853 crore. Voltas reported that it booked a profit of almost Rs 78 crore from the sale of a unit Simtools boosting its net profit in Q4 March 2007. The company's electro mechanical projects and engineering divisions expanded more than 50% each, but the commercial refrigeration and airconditioning division grew just 11% in Q4 March 2007. Voltas also reported that its outstanding order book rose nearly by a fifth to Rs 2190 crore in FY 2007. Cooling product segment showed breakeven. We will update you on this one in detail soon.

Suzlon Energy, India's largest manufacturer of wind power equipment closed lower by 9%. Suzlon Energy reported unexpected results lower than the market expectations. The company's consolidated net profit declined 3.4% to Rs 359 crore in Q4 March 2007 while the consolidated total income jumped Rs 2962 crore from Rs 1560 crore. Operating margins fell by a huge 900 basis points during the quarter on a YoY basis. Net profit moved up 13.7% to Rs 864 crore for the year ending March 2007 from Rs 759 crore in FY 2006. Total income soared to Rs 8082 crore from Rs 3915 crore in FY 2006. Suzlon Energy's order book position stood at Rs 9,486 crore, comprising of Rs 1408 crore domestic orders and Rs 8,078 crore export orders. Suzlon has been in bidding war with France's Areva for acquiring German wind turbine maker REpower. The company recently said that it and its partners hold 30.92% in takeover target REpower, slightly larger than French rival Areva's stake in the target company. Suzlon has offered 150 Euros per share, valuing REpower at around 1.2 billion euros ($1.6 billion) while Areva has offered 140 euros per share.

Technically Speaking: Markets traded in a volatile manner with no clear direction where it was headed for. Sensex touched an intraday high of 14024 levels and low of 13885 levels. Volumes were good as the market churned almost Rs. 4131cr. Overall breadth was in favor of Advances, where the Advances were 1314 against Declines of 1270. Market has been finding very difficult to sustain above the 14,000 mark since the past few weeks. Sensex is finding good resistance at 14030. The uptrend is intact unless 13750 levels are not broken. Support exists at 13865 and 13820 levels while the Resistance is seen at 13950 and 14030. Above 14030 levels, the sensex might do up to 14400 levels, which could be our final target for the current rally.