Weak global cues dragged Indian indices down and the indices closed with big cuts. Metals, Capital goods, and Finance sector faced major sell off. SENSEX shut shop at 18070, down 149 points and Nifty at 5420, down 40 points from the previous close. Both CNX MIDCAP index and BSE SMALLCAP index were down 0.5%.

The market breadth was negative with advances at 465 against declines of 826 on the NSE. Top gainers included TATAMOTORS, JINDALSTEL, BPCL, RELCAPITAL, AMBUJACEM, GAIL, IDEA, HINDALCO, TATAPOWER and RANBAXY while top losers are listed as TATASTEEL, WIPRO, HDFC, M&M, ICICIBANK, STER, UNITECH and TATASTEEL.

In the next session if NIFTY traded below 5408 it might face continuous selling pressure and likely to test 5360 and 5330 levels. Traders are suggested to take short position at rise keeping in view the resistance level 5470. BANKING and METALS may face major sell off. PHARMA 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.

The board of Kaira Can Company has revised and approved the cost of modernisation-cum-expansion programme around Rs. 1300 lakhs from Rs. 650 lakhs which was approved earlier.

Asahi Infrastructure & Projects has announced that the company has received work order for construction of 544 houses and infrastructure work like roads, sewerage system, community centres pre-primary schools water supply pipelines and development of parks, etc under central Government scheme for Municipal Council Washim District Washim. The value of the contract is Rs. 1022.35 lakh

Mohit Industries has received order from Larsen & Toubro for supply of more than 150000 blocks in the next three months.

This order is for the first phase requirement worth Rs. 1.30 crore and the delivery for the above order has already started.

Educomp Solutions has announced that it has picked up a strategic stake in leading engineering test prep player, Vidya Mandir Classes (VMC) for close to Rs.34 crore.