Indian indices traded flattish to positive, NIFTY closed above 5600. CEMENTS, METALS, AUTO, AND TELECOM traded with good gains while banking stocks appeared facing profit booking. SENSEX closed at 18645, up 85 points and Nifty at 5604, up 27 points from the previous close. CNX MIDCAP index was down 0.1% and BSE SMALLCAP index was up 0.6 %. The market breadth was positive with advances at 726 against declines of 552 on the NSE. Top gainers included ACC, LT, TCS, JAIPRA, NTPC, SUZLON IDEA and AMBUJACEM.

Next Day Trading Session:

In the next session, NIFTY may face selling pressure if traded below 5570and expected to test 5510 and 5470 levels. BANKING STOCKS may face major selling pressure. REALITY may also appear weak, while AUTO and IT may attract buying.

Fundamental Picks

Investors who have a horizon of 6-12 months can buy the following companies. The companies have potential to give higher returns than index over a long term.

Corporate Highlights

The board of KEC International in its meeting on 06 September 2010 has approved the proposal to acquire SAE Towers Holdings LLC. SAE Towers is engaged in manufacturing and supply of power transmission towers, related hardware, sub-station structures and poles for power transmission

The committee of State Bank of India has accorded approval for raising tier II capital by way of public issue of lower tier-II bonds for an amount of Rs. 500 crore with an option to retain 100% oversubscription (green shoe option).

Man Industries (India) has secured orders worth Rs. 1200 crore from various international and domestic customers including GAIL for its DBPL project. These orders are for supply of approximately 2 lakh tons of large dia meter pipes in both LSAW as well as HSAW segments.