Indian market ignored strong cues from Asian market and faced selling pressure after getting weak cues from EUROPE. SENSEX closed at 17878, down 50 points and Nifty at 5368, down 18 points from the previous close. CNX MIDCAP index was down 0.6% and BSE SMALLCAP index was down 0.4%. The market breadth was negative with advances at 509 against declines of 762 on the NSE.

REALITY and METALS maintained good momentum while AUTO and HEALTH CARE faced selling pressure. Top gainers included NTPC, DLF, HINDALCO, LT, WIPRO, UNITECH, STER and ABB; top losers are listed as JAIPRA, ITC, TATAMOTORS, MARUTI, ICICIBANK, BPCL and RCOM.

In the next trading session if NIFTY traded below 5350 it may test 5300. However, 5270 may act as a strong support level. Traders are suggested to avoid fresh long position below 5350 NIFTY. BANKING FINANCE and AUTO may face selling while REALITY and POWER show 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.

Balrampur Chini Mills has announced that the Hon'ble Board for Industrial and Financial Reconstruction (BIFR) has sanctioned the rehabilitation scheme containing the scheme of arrangement for the demerger of sugar division of Indo Gulf Industries (IGIL) situated at Maizapur, Gonda, U.P. and merger of the said sugar division with the company including the share exchange ratio of 1 equity share of Re. 1 each fully paid up in Balrampur Chini Mills (BCML) for every 100 equity shares of Re. 1 each (post restructuring) held in IGIL, vide its order dated 24 June 2010.

ACIL The board of ACIL Cotton Industries in its meeting on 20 July 2010 has decided to setup a Agri-Hub, a distribution chain which will deal all types of agri products which are grown in various parts of the country.