Indian market faced selling pressure throughout the day, IT-SECTOR faced major selling pressure. SENSEX closed at 20125, down 372 points from its previous close, and Nifty closed at 6062, down 114 points. The CNX MIDCAP index was down 1.5% and the BSE SMALLCAP index was down 0.7%. The market breadth was negative with advances at 297 against declines of 1008 on the NSE. Top gainers included NTPC, DRREDDY, CAIRN, RCF, AREVAT&D, VIJAYABANK and HAVELLS. Top losers are listed as WIPRO, TCS, INFOSYSTCH, HEROHONDA, BHARTIARTL, TCS, AXISBANK and BPCL. The FIIs were net sellers with sales amounting to 112.75 Cr.

In the next session NIFTY future may face heavy resistance near 6161; selling pressure at higher levels may push NIFTY to 5950 level. Traders are suggested to sell at rise. BANKING STOCKS and REAL-ESTATE may face major selling pressure, while PHARMA 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.

Dr Reddys Laboratories has announced that it will be launching Lansoprazole delayed- release capsules (15 mg and 30mg), a bioequivalent generic version of Prevacid Delayed-Release Capsules, in the US market. The Food & Drug Administration (FDA) approved the company's ANDA for Lansoprazole delayed-release capsules on 15 October 2010. Launch preparations are complete and shipments will commence shortly.

The board of Sarthak Industries has approved the merger of Gloryshine Property Developers (GPDPL) with the company.

SSPDL has announced that SSPDL Interserve, subsidiary of the company has been awarded a construction contract aggregating to Rs. 14.63 crore from Sundara Sundaram Architects, Coimbatore for construction of Meeting Houses at Bangalore.

The above mentioned ideologies are based on the research done at Fairwealth research department. Fairwealth securities 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.