The market opened negative and continuously moved trend downwards due to sell-off in OIL & GAS, REALTY, AUTO, CAPITAL GOODS which dragged the SENSEX and the Nifty below 20000 and 6000, respectively. However, a late surge in trade with buying in BANKS, METALS and FMCG pushed the indices higher for a firm close. SENSEX closed at 20069, up 112 points and Nifty at 6029, up 38 points from the previous close. CNX MIDCAP index was down 0.5% and BSE SMALLCAP index was up 0.1%. The market breadth was negative with advances at 516 against declines of 759 on the NSE. Top gainers included HDFC, STER, WIPRO, HINDALCO, ITC. Top losers are listed as ONGC, ACC, RELINFRA, RIL, TATAMOTORS, BPCL, POWERGRID, ABB, RELCAPITAL and AMBUJACEM.

Next Day Trading Session:

In the next session NIFTY may face resistance around 6060-6075, however it is expected to the resistance and stay bullish. Traders are suggested to buy at declines. BANKING and FINANCE may attract buying along with METALS. AUTO and REALESTATE might stay weak.

EXPECTED BULLISH STOCKS

SBIN
ICICIBANK
AXISBANK
HDFCBANK
SBIN
SAIL
BHUSANSTL
GTLINFRA
GODREJIND
RENUKA
BALRAMCHINI
INDIANB
DABUR
HUL
OBC
HCLTECH
INFOSYSTCH
LITL
TATAPOWER

EXPECTED BEARISH STOCKS

RELCAPITAL
BPCL
IOC
ABAN
HDIL
RCOM
TATACOMM
DRREDDY
LUPIN
SINTEX
ACC
DENABANK
M&M
OPTOCIRCUI
IVRCLINFRA

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.

DIC India Ltd has achieved its target of Rs. 340
GEI Industrial Systems Ltd has achieved its target of Rs. 170
Dena Bank has achieved its target of Rs. 108
Visaka Industries has achieved its target of Rs. 180
Man Industries has achieved its target of Rs. 90
Aarti drugs has achieved its target of Rs 135
Indoco Remedies has achieved its target of Rs 465, call given at Rs. 388
Riddhi Siddhi Gluco Biols has achieved its target of 258, call given at 216
Ess Dee Aluminium has achieved its target of Rs 520
TNPL has achieved its target of Rs. 115

Corporate Highlights

ADF Foods Ltd, a leading packaged Indian food provider, has entered into an agreement to acquire a substantial portion of the assets of Elena's. It is a US-based manufacturer and marketer of organic and natural products and a leading provider of proteinbased Mexican foods in the natural and organic category. It clocked a turnover of USD nine million in 2009.

Nippon Steel Corp and India's Tata Steel Ltd are in talks to set up a blast furnace facility in India through a joint venture. The proposed furnace, to be set up with an estimated investment of 200-300 billion yen and with a production capacity of 3 million tons a year.

Punjab National Bank said that it will from Oct 1 raise its base rate to 8.5 percent from 8 percent. Its benchmark prime lending rate will remain at 11.75 percent. The rates of interest on domestic term deposit will also increase in select buckets from Oct 1.