Indian markets, after a positive opening, faced selling pressure especially in INFRASTRUCTURE, CAPITALGOODS and IT stocks , which dragged the indices into red but later good buying over BANKING and FINANCE STOCKS shed most of the loses. SENSEX closed at 19941, down 59 points and Nifty at 5991, down 18 points from the previous close. CNX MIDCAP index was down 0.2% and BSE SMALLCAP index was down 0.3%. The market breadth was negative with advances at 422 against declines of 866 on the NSE. Top gainers included MARUTI, HDFC, SBIN, TATAMOTORS, WIPRO, ABB, and ITC. Top losers are listed as JAIPRA, RCOM, LT, TCS, INFOSYSTCH, and CAIRN.

Next Day Trading Session:

In the next session NIFTY is expected to trade in the range 5945-6045. REAL-ESTATE, CEMENTS and METALS STOCKS may face selling while PHARMA and FMCG may attract buying in the next session. For the next session traders are suggested to sell at rise as long as NIFTY is trading below 6045.

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

Gujarat Gas Company has entered into an agreement with BG India Energy Solutions for purchase of 0.50 mmsemd of re- gasified LNG (RLNG) on a firm basis for the period from 01 October 2010 till 31 December 2013 to enable the company to meet the natural gas requirements in its markets.

Gammon India has announced that Gammon Group Companies have bagged an order for supply of 1 x 150 MW steam turbine and boiler for Nagai Power plant valued at approximately Rs. 310 crore.

Black Rose Industries has entered into a foreign technology license agreement with a $16 billion global chemical company for its proposed plant for the manufacture of specialty Monomers.

Disclaimer: The above mentioned ideologies are based on the research done at Fairwealth research department.

Fairwealth securities Ltd will not be responsible for any kind of losses incurred by any part either directly or indirectly based on our research results, though we have presented to the best of our knowledge.