Growing tensions in KOREA and worries of EUROPE led heavy sell off in Indian market. The SENSEX and NIFTY briefly broke the psychological level of 16000 and 4800, respectively, for the first time since February 2010. The market ended near the lows of the day with SENSEX closed at 16022, down 447 points, and Nifty at 4806, down 137 points from the previous close. CNX MIDCAP index was down 2.6% and BSE SMALLCAP index was down 3.4%. The market breadth was negative with advances at 133 against declines of 1171 on the NSE. Top gainers included CIPLA, SUNPHARMA, SIEMENS, GODREJCONSUMER, PIRHEALTH, REIAGRO and BOSCH. Top losers are listed as RCOM, HINDALCO, TATAMOTORS, STER, TATASTEEL, JSPL and AMBUJACEM.

Next Day Trading Session:

In the next session, NIFTY if sustained below 4777 level might be dragged to 4670 level. However, 4722 may act as a minor support level. 4850 and 4890 are major resistance levels in NIFTY. BANKING STOCKS may face fresh selling, while CAPITAL GOODS may appear strong.

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.

Visaka Industries has achieved its target of Rs. 180, call given at Rs.122
Banco Products has achieved target of Rs 110, call given at Rs 75.
Riddhi Siddhi Gluco Biols has achieved its target of 258, call given at 216

Corporate Highlights

Pharma major Lupin Ltd has received USFDA approval for its losartan potassium and hydrochlorothiazide tablets. These are used to treat high blood pressure.

Personal care products maker Marico Ltd’s unit Kaya Ltd acquired the aesthetics business of Singapore based Derma Rx Asia Pacific Pte Ltd. Derma generates a turnover of 500 million rupees annually.
The acquisition will help Kaya's revenue share rise from 13 percent currently to over 20 percent.

Aurobindo Pharma has received the nod from the US health regulator to manufacture and market its Valacyclovir Hydrochloride tablets, used for the treatment of chicken pox.

Bafna Pharmaceuticals has received the good manufacturing practices approval from Ethiopia's Drug Administration and Control Authority for its antibiotics manufacturing plant in Chennai. The company, which has two plants in the city, received the approval for a particular unit that manufactures only non -betalactum antibiotics.