Fine global cues, helped Indian indices to break first half session’s volatility and traded in positive territory at closing. BANKING, AUTO, FMCG and IT attracted major buying activities while METALS appeared weak. SENSEX closed at 17117, up 95 points and Nifty at 5135, up 25 points from the previous close. CNX MIDCAP index was up 0.5% and BSE SMALLCAP INDEX was up 0.2%. The market breadth was negative with advances at 619 against declines of 652 on the NSE. Top gainers are listed as ITC, SBIN, MARUTI, RCOMM, HUL and CAIRN while top losers are listed as ONGC, HDFCBANK, BHEL, TATAPOWER, JSPL, ONGC, AMBUJACEM, SAIL, KOTAKBANK and RPOWER.

Next Day Trading Session:

Despite strong trading session, NIFTY failed to cross the crucial level 5150. Traders are suggested to remain cautious of this crucial level; NIFTY may attract selling pressure if failed to sustain above 5150. HOWEVER, 5215 may act as a resistance while 5060-70 would be a good support level. Traders are suggested to avoid long position as long as NIFTY is trading below 5150. IT
and AUTO may continue buying while BANKING may face some correction.

Fundamental Picks

Investors having a horizon of 6-12 months can buy the following companies. The companies have a potential to give higher returns than index over a long term.
Allied Digital Services Ltd
Bartronics India Ltd
DIC India Ltd
Dena Bank Ltd
Nectar Lifesciences ltd
GEI Industrial Systems Ltd
TNPL Indoco Remedies Ltd
JK Paper Ltd Ballarpur Industries Ltd
Aarti Drugs
Riddhi Siddhi
Gluco Biols
Electrotherm (India)
Balkrishna Ltd.
McNally Bharat
Ess Dee Aluminium
Hyderabad Industries
Monnet Ispat
Biocon
Alembic
Visaka Industries
Munjal Showa
Jindal Saw Ltd

Visaka Industries has achieved its target of Rs. 180, call given at Rs.122
Banco Products has achieved target of Rs 110, call given at Rs 75.
Riddhi Siddhi Gluco Biols has achieved its target of 258, call given at 216
Aarti drugs has achieved its first target of Rs. 130

Corporate Highlights

The board of Kpit Cummins Infosystems in its meeting on 04 June 2010 has approved a joint venture agreement with Bharat Forge for innovative solutions belonging to next generation of automotive technology.

Indiaco Ventures has entered into a Memorandum of understanding with the CTI-PFAN, Bangkok. CTI-PEAN and Indiaco Ventures will work together towards the promotion of energy efficiency technologies and companies in India.

Varun Industries has signed a Memorandum of Understanding with the Government of Karnataka to set up a steel plant at a cost of Rs 304 crore at Bagalkote district in Karnataka. The application was cleared at a high level steering committee of the Government of Karnataka.

The board of Heidelberg Cement India in its meeting on 04 June 2010 has approved to increase the cement production at Raigad Unit of the company in Maharashtra by 0.625 Million TPA, subject to receipt of requisite approvals.