Weak GLOBAL and DOMESTIC cues caused heavy selling pressure over Indian Indices, SENSEX closed at 20156, down 432 points and Nifty at 6071, down 122 points from the previous close. CNX MIDCAP index was down 2.1% and BSE SMALLCAP index was down 2.4%. The market breadth was negative with advances at 194 against declines of 1125 on the NSE. Top Nifty gainers were DR REDDY'S, BAJAJ AUTO, HDFC, CAIRN and HERO HONDA while losers included DLF, SBI, HINDALCO, TATASTEEL, RPOWER, IDFC, and MAHINDRA & MAHINDRA. The FIIs were the net sellers with sales to the tune of Rs 782.27 cr (prov cash market fig.)

In the next session, NIFTY is expected to test 6000 level, sustaining below this level it may come down to 5940-5870. However, 6120-6150 is expected to act as a strong resistance zone. Banking and metals may attract major selling pressure. PHARMA and AUTO may appear comparatively strong.

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.

Videocon plans to split businesses - Durables-to-oil and gas conglomerate Videocon Group it is planning to split its various businesses, a move that could help them raise capital or induct strategic partners into some businesses. This move will ensure greater focus on the operation of each of the company's diverse businesses and enhanced value for shareholders and improvement in the business prospects of the company, said the release.

Amara Raja Batteries will invest nearly Rs 130 crore by September next year to hike production capacity in a phased manner and on other capital expenditures. The company, which is aiming to become a global brand also said it is considering the possibility of setting up a manufacturing unit overseas, preferably in Southeast Asia and Africa.

State-owned refiner-marketer Hindustan Petroleum plans to pump Rs 30,000 crore into a new refinery with a capacity of 18 million tonnes per year in Maharashtra, even as the company found itself back in black with a net profit of Rs 2,090 crore in the second quarter on the back of government subsidy support. The new refinery was conceptualized to make up for space constraints at HPCL's existing Mumbai refinery.

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.