Indian market remained choppy throughout the day. Indices failed to sustain above the dotted line and selling pressure in the final hour of the trade drag almost all sectoral indices in red. Reality again appeared as worst performer. The Sensex closed at 19136, down 181 points from its previous close, and Nifty closed at 5751, down 47 points. The CNX Midcap index was down 1.9% and the BSE Smallcap index was down 4.4%. The market breadth was negative with advances at 156 against declines of 1168 on the NSE. The top Nifty gainers were SAIL, TCS, Cipla and HCL Tech and losers included JP Associates, Reliance Infra, Cairn and Sesa Goa. The FIIs were net sellers with sales worth Rs 473.31 cr (prov. cash market fig)

Market Outlook

In the next session, Nifty would find support at 5656 and 5800-5820 may act as a

resistance zone. Traders are suggested to follow the strategy of selling at rise as long as NIFTY is trading below 5900. Reality and Banking stocks may face selling at rise while PHARMA and AUTO sector may appear strong.

Expected Bullish Stocks

M&M
RRreddy
ITC
Mphasis
Godrejind
Herohonda
BHARTIARTL
Auropharma
Cipla
SUNTV
Lupin Crompton
Tatamotors
Ioc
Bpcl
GESHIP
Exide
Mundraport

Expected Bearish Stocks

Reliance
PNB
Bankindia
Dlf
Hdil
Rcom
Idea
Andhrabank
Ster
Jswsteel
Tatasteel
Ekc
Aban
Ibrealest
Hcc
Punjlloyd
Jindalsaw
Axisbank

Fundamental Picks

Investors with a horizon of 6-12 months can consider following scrips for their investment. These companies have potential to give higher returns than index over a long term.

DIC India Ltd has achieved its target of Rs. 340
First Leasing Ltd has achieved its target of Rs. 92
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
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 News

The National Thermal Power Corporation (NTPC) will give 2,000-Mw of power to Chhattisgarh at a nominal price from its proposed 4,000-Mw power project in Raigarh district. The state government and the largest power producer of the country inked an agreement yesterday to this effect. Under the deal, NTPC will sell 2000-Mw of power to Chhattisgarh government at Rs 2.50 per unit from its 4,000-Mw Lara power project.

Mahindra & Mahindra (M&M) on Friday informed the BSE that it has agreed to buy 5.5% stake in Tech Mahindra from British Telecom (BT) in a transaction which may be worth about $94 million. BT holds 30% stake in Tech Mahindra, and contributes 35% to the tech firm's revenues.

The Union environment ministry has issued a show-cause notice to Lavasa Corporation, which is constructing a 25,000-acre hill township near Pune, alleging myriad violation of environmental laws. The company, promoted by a clutch of investors led by Hindustan Construction Co, will have to stop construction work immediately.