After gaining over 850 points in last two consecutively days, the
Sensex today ended flat at 14,256 amid high volatility due to
profit booking. The Sensex opened at 100 points higher at
14,352 following yesterday's 433 points rally and soon touched
a high of 14,493. Profit taking at higher levels forced the index
pare gains and slip into negative zone post noon trades. The
index, however managed to bounce back into positive terrain after touching a low
of14, 169 among the sectoral indices, the Auto, Oil & Gas and Consumer Durables
indices gained 1.5-2% each. On the other hand, the Consumer Goods index was
down 1.6% at 11,818. The market breadth was fairly positive - out of 2,689 shares
traded, 1,465 advanced while 1,131 declined.
Investors booked profits after the sharp rise in last two sessions. Gains in
heavyweights like Reliance Industries, Tata Steel and Tata Motors arrested the fall
in the benchmarks. Market opened firm taking cues from rally in the US markets.
But soon after the indices reached psychological resistance levels, traders exited
positions. According to dealers, there was build-up of short positions as well in
the afternoon. There was lack of buying activity in the market despite positive
global cues. Market looks expensive at current levels and upside from these levels
seems limited. Markets face resistance at 4350 level.
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