Range bound market with negative bias

Markets are trading in a narrow range with a negative bias at noon. The Sensex has so  far traded in a range of 120 points. At 1245 hours the Sensex was at 15,948, down 23 points and the Nifty was down 11 points at 4,768. Earlier in the day, the Sensex touched the high of 16,049 and low of 15,928.

According to Ranak Merchant, Technical Analyst - Strategies, Sushil Financial Services, "The first resistance for Nifty lies near 4,816. Today we tested the psychological mark of 4,800 (high 4,801) and then have been in sideways territory. Holiday season and testing of a psychological as well as technical target has led to lowering of momentum. However as its the last week of the year and also Derivatives expiry, momentum is expected to return for the rest of the week."

Tata Power is the top gainer among the Sensex stocks, up 1.8% at Rs 90. Larsen & Toubro is also trading higher by 1.3% at Rs 1,040 after the company said Mitsubishi Heavy Industries, Japan will sign technology collaboration agreement with L&T Shipbuilding – the shipbuilding arm of the company – to provide a broad range of technology support for the construction of commercial vessels.

Mahindra & Mahindra, Jindal Steel, Wipro, Bajaj Auto, Sun Pharma, Sterlite Industries and Hindalco are also among the gainers.

On the other hand, Tata Motors, DLF, Cipla, J P Associates, Coal India, Tata Steel, TCS and SBI are among the losers.

Among the individual shares, Exhibition companies, including Fame India, PVR, Inox Leisure and Cinemax India, are trading higher on the bourses on the back of huge volumes in an otherwise subdued market.

ADAG (Anil Dhirubhai Ambani Group) stocks – Reliance Communications, Reliance Capital, Reliance Infrastructure and Reliance Power have rallied in the range of 2-5% on buzz of a patch-up between the Ambani brothers.

Hanung Toys and Textiles has rallied 8.5% to Rs 105.75, extending its over 22% surged in past two trading days, on back of huge volumes. The trading volumes on the counter jumped almost four-fold today.

Capital Goods sector stocks are witnessing some buying inerest in trades thus far. BSE Capital Goods, index is up 0.6% or 55 points at 83,24. Healthcre, FMCG, Consumer Durables, Power, IT and Oil & Gas indices are trading on an absolutely flat note. Banking, realty and PSU stocks are under a mild selling pressure. Bankex has shed 0.6% at 9,546. Realty, PSU, Metal and Auto indices are also in the red.

Axis Bank, is the top loser among the banking stocks, down 2% at Rs 855. Indusind Bank, Kotak Mahindra Bank, Union Bank, IDBI Bank, Yes Bank and Canara bank are also trading lower by 0.7-1.6% each.

The BSE mid-cap and small-cap indices are trading marginally lower.

The overall market breadth is neutral as 1,166 stocks are advancing while 1,187 are declining.