The Indian market closed the first day of a new F&O series with huge cuts in a late trade selloff. MIDCAP stocks were weak and sector wise, realty, IT, FMCG and banks ended with losses. SENSEX closed at 17974, down 251 points and Nifty at 5397, down 80 points from the previous close. CNX MIDCAP index was down 1.1% and BSE SMALLCAP index was down 1.5%. The market breadth was negative with advances at 299 against declines of 997 on the NSE. Top Nifty gainers included GAIL, ONGC and TATA STEEL while losers included DLF, HERO HONDA and AXIS BANK.

In the next session, IF nifty sustained below 5390 it may test 5290. 5460 may act as a strong resistance level. Traders are suggested to sell at gains as long as NIFTY is trading below 5460 and SENSEX is trading below 18265. REAL ESTATE, METALS and AUTO may face selling pressure while POWER and FMCG may attract buying.

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.

Spice Mobility has announced that the Hon'ble High Court of Judicature at Allahabad on 26 August 2010 has sanctioned the scheme of amalgamation of Spice Televentures with Spice Mobility

Indusind Bank and Tata Motors have entered into an agreement, under which Indusind Bank will provide finance to Tata Motors' prospective car customers.

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.