Indian market continued trading in a small range. After a weak start Indices traded flat most of the time in the session. SENSEX closed at 17928, down 27 points and Nifty at 5386, down 7 points from the previous close. CNX MIDCAP index was up 0.3% and BSE SMALLCAP index was up 0.1%. The market breadth was negative with advances at 630 against declines of 658 on the NSE. Banking and METALS traded strong while FMCG appeared weak. NTPC, RCOM, HINDALCO, LT, HDFC and IDEA were top gainers while ITC, STER, DLF, MARUTI, HEROHONDA, ABB, and SIEMENS were top losers.

NIFTY is trading in a range 5350-5420. Traders are suggested to follow the strategy of buying at dips only as long as NIFTY is trading above 5350. In the next session, buying activity is again expected from this level. BANKING and METALS may stay strong while AUTO and PHARMA may face profit booking.

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.

ITC reduces stake in Agro Tech Foods.

UTI Asset Management Company plans to spread its loss-making micro-pension business across the country to gain size and profitability.

Hyderabad-based MIC Electronics, a global leader in design, development and manufacture of LED video displays and high-end electronic and telecommunications equipment, has entered into a joint venture with Taiwan-based home lighting appliances player Home Resources Ind Co.

L&T General Insurance Company, promoted by the engineering giant Larsen & Toubro, will soon commence general insurance business. The company has received necessary licence from the Insurance Regulatory and Development Authority for launching operations, L&T said in a statement.

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