Market Close: Consolidation or.. ?

After new high Indices witnessed some level of Profit booking. Market remained rangebound throughout the Session with buying and selling across which created a tag of war, pushing Indices on either side of the Region. Selling was seen in the mid session in IT, Pharma, FMCG and capital good while Realty, Banking, Consumer durable and Metal space managed to attract decent buying interest to close in green. Midcaps & Smallcap their winning streak as they kept investors busy. Market was in line with Asian markets which ended mixed while Europe is trading weak. IT major TCS results are expected after the market hours..

Sensex ended up by 38 points at 15311.22. It was helped up by gains in Rel Energy (705.9,+5 percent), SBI (1613.5,+4 percent), Bajaj Auto (2255.3,+4 percent), RCVL (574.05,+3 percent) and Guj Ambuja (133.3,+3 percent). Restricting the gains were Wipro (500.7,-2 percent), Satyam (482.05,-2 percent), HLL (198.15,-2 percent), Ranbaxy (345.65,-2 percent) and BHEL (1659,-1 percent).

Software Company Mastek Ltd was on the peak after it reported of acquired 90 % stake in US-based Vector Insurance Services LLC for nearly Rs 40 Cr ($ 9 Mn), about 50% in cash and 50% in earn out. The acquired company had revenue of USD 4.2 mn last year. This was strategic Acquisition which wil reinforces the solutions-driven offerings in the high opportunity US insurance market. Vector fits very well with Mastek's overall strategy to be a leader in providing end-to-end IT solutions within the insurance vertical. As per the agreement Mastek's wholly-owned US subsidiary MajescoMastek would buy 90 % equity stake in Vector. Mastek's presence in US will get a boosted and operations in the US insurance vertical also will enable greater value for its shareholders over the long-term. Mastek expects it to be profitable, as it will bring in synergies in terms of costs. Mastek Surged to trade at its all time high level.

Reliance Communications has announced that it has acquired US based Yipes Communications in a Rs. 1200 crore ($300 million) all cash deal. With this acquisition RCom will enter the enterprise and institutional data services market in the US. Yipes is operational in 14 cities in the US with over 22,000 route km of optic fibre. It has around 1000 enterprise customers including Verizon and is cash positive with operating margins of 55 percent. Reliance plans to take the Yipes franchise global in association with Reliance Communication owned FLAG Telecom. FLAG telecom has turned profitable for the first time in its history. Reliance has invested Rs. 2000 crore in FLAG since its acquisition, and all investment has been done financed internally by cash flows generated from FLAG operations. Rcpm managed to see some level of Buying to close up by 3.5%.

Technically speaking: Volatility plagued the markets today and traded ranged to make intraday high of 15341 and low of 15217 levels. Through out the day the Advance outnumbered the Decliners as the Advances stood at 1481 against Declines of 1224. Market turnover was good at Rs 5270 Cr. Sensex support is seen at 15120 levels while resistance at 15500 levels. Sensex has broken into a new zone and trending up with gap up open. This is a very bullish sign and signifies more new highs to come. The trend remains up, avoid shorts.