Rangebound trade persists

Markets continue to remain range bound in noon deals. The Sensex is up 84 points at 17,161 and the Nifty has advanced 24 points to 5,182 levels.

Early today, markets opened higher, shrugging off global cues, with the Nifty crossed the crucial psychological level of 5,200 in the opening deals but the momentum was short lived as the profit booking in the banking, realty and capital goods stocks creeped in.

According to Chandan Taparia, Derivative Analyst, Anand Rathi Financial Services, "If Nifty fails to hold 5,200-5,230 levels then this rally may fizzle out. If Niftty goes below 5,180 then one can go short with stop loss of 5,130 for the downside target of 5,050 levels. Whereas on upside if it sustains 5,225 then it may further head towards 5,300-5,350 levels."

Meanwhile, on the macro economic front, food price index declined 1.03% in the year to January 14 government data on Friday showed, compared with an annual drop of 0.42% in the previous week.

The fuel price index climbed an annual 14.45%, the same as the week before.

The primary articles price index was up 1.89%, compared with an annual rise of 2.47% a week earlier.

Back to markets, Tata Motors is the top gainer among the Sensex stocks, up nearly 4% at Rs 239. Sterlite Industries has also jumped 3.3% to Rs 118. Bharti Airtel, index heavyweight Reliance Industries, Gail India, Tata Steel, infosys, Mahindra & Mahindra, Sun Pharma, Cipla, TCS and hindalco are also trading higher.

However, Bajaj Auto, BHEL, DLF, hero MotoCorp, SBI, HDFC, HDFC Bank, ITC, Jindal Steel and ICICI Bank are the lagards on the benchmark index.

Consumer Durable, oil & gas and metal stocks are witnessing buying in the noon deals. BSE Consumer Durables index is the top sectoral gainer, up 2.2% or 132 points at 5,983 levels. Titan Industries is the top gainer among the connsumer dura
bles, up 4% to Rs 205. VIP Industries, Blue Star, Gitanjali Gems, TTK Prestige, Rajesh Exports and Bajaj Electricals are also among the gainers.

Oil & Gas index has also jumped, 2.1% or 8,494 levels led by Reliance Industries which gained 3.1% ahead of its buyback offer.

Metal index is also trading higher by nearly 2% after LMEX, a gauge of six metals traded on the London Metal Exchange (LME), rose 2.4% to close at $3,777 on January 26. The index has rallied almost 5% so far in a week on reports that the U.S. Federal Reserve was ready to offer additional stimulus, a move that could lift economic growth and demand for industrial metals. 

Among the individual stocks, Sesa Goa has soared 6% on reporting higher than expected volumes and price realizations during the quarter ended December.

Sterlite Industries is up 4%, followed by SAIL, Hindustan Zinc and Bhushan Steel by 3% each and Tata Steel and Hindalco by 2% each on the BSE.

IT, Auto, PSU, Healthcare and Power indices are also trading higher.

At the same time, Realty, Bankex, FMCG and Capital Goods indices are in the red.

HDIL is the top loser from the realty space, down 3.6% to Rs 79. It is followed by Unitech, DLF, Sobha Developers, Parsvnath Developers and Oberoi Realty.

Among the individual shares, Bank of Baroda is trading lower by 4% at Rs 759, extending its Wednesday’s over 1% fall after the bank said that its net non-performing assets (NPAs) rose to 0.51% in December from 0.36% on year ago.

Shares of P R S Oberoi promoted EIH Group companies – EIH Limited and EIH Associated Hotels have rallied more than 9% each on reports that fast moving consumer goods giant, ITC, may acquire more stake in the EIH.

PTC India Financials has frozen upper circuit of 20% at Rs 16.64, after reporting over ten-fold jump in net profit at Rs 57.90 crore for the quarter ended December 2011. The state-owned finance company had a net profit of Rs 5.71 crore in the

The broader markets are trading higher. The BSE mid-cap index is up 0.4% at 5,860 levels and the small-cap index is up 1% at 6,472.

The overall breadth is positive as 1,590 stocks are advancing while 1,044 are declining.