Weak global cues from European market lead to further selling pressure in Indian indices after gap-down opening, led NIFTY to close below 200 DMA. All sectoral indices closed in red with SENSEX closed at 16408, down 467 points and Nifty at 4919, down 146 points from the previous close. CNX MIDCAP index was down 3% and BSE SMALLCAP index was down 2.5%. The market breadth was negative with advances at 174 against declines of 1116 on the NSE. Top gainers included TATAPOWER, HEROHONDA, BPCL, SUNPHARMA, RNRL, FEDRALBANK, ROLTA, MMTC and EKC. Top losers are listed as TATAMOTORS, STER, ICICIBANK, RCOM, JAIPRA, IDEA, RELCAPITAL and UNITECH.

In the next session, it would be hard for nifty to move above 5000, traders are suggested to sell at gains. NIFTY is expected to test 4865 AND 4830 levels. Long positions in heavyweights should be avoided. PHARMA and IT STOCKS may show some strength while BANKING and METALS may face sell off.

Weekly Techno-Funda Calls-

We are not providing Techno Funda Calls for this week because of uncertain market conditions. Whenever we find the market conducive for investors/traders we will again come up with these calls

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.

The board of Alka Securities in its meeting on 14 May 2010 has considered and approved to change the name of the company and to alter the main objects of the company. The board has approved to transfer the broking business to a new subsidiary to be formed for the purpose

The board of Winsome Textile Industries in its meeting on 18 May 2010 has approved to issue GDRs/ADRs/FCCBs/QIP/ securities convertible into equity shares fully or partly convertible debentures/securities/any other domestic/international offering, subject to approval of shareholders upto Rs 50 crores.

The compensation and remuneration committee of Ambuja Cements in its meeting on 22 April 2010 has granted stock options to the managing director and employees of the company who are eligible under Employees Stock Option Scheme 2010 aggregating to 99,98,900 options.