Indian market took a positive start but faced heavy selling pressure at higher levels, finally turned into red in the final hour of the session. Metals appeared as major gainers while Banking faced major selling pressure. The SENSEX closed at 19981, up 14 points from its previous close, and Nifty closed at 5992, down 0.5 points. The CNX Midcap index was down 0.6% and the BSE Smallcap index was down 0.9%. The market breadth was negative with advances at 518 against declines of 781 on the NSE. The top Nifty gainers were Sterlite Industries, Tata Steel, Tata Motors and Jindal Steel and losers included Hero Honda, SBI, RCom and PNB. The FIIs were net sellers with investments worth Rs 201.62 cr.

Market Outlook

In the next session, NIFTY if sustained below 5959 may face heavy selling pressure and might breach 5850 level. Also, 6036-6070 may act as a strong resistance zone for the next session. Banking and Realty may face selling pressure again while IT and FMCG may attract buying at lower levels.

Expected Bullish Stocks

Havells
STER
CESC
BEL
TATAMOTORS
INFOSYSTCH
TCS
WIPRO
SIEMENS
SUNPHARMA
CIPLA
AREVA
T&D
CAIRN
VIDEOIND
MCDOWEL-N
JINDALSTEL
IGL
TATASTEEL

Expected Bearish Stocks

CANBK
ALBK
YESBANK
UNIONBANK
OBC
BOI
HEROHONDA
RCF
IDFC
HINDZINC
AXISBANK
EDUCOMP
ABAN
BPCL
BGRENERGY
APIL
RENUKA
CENTURYTEX

Fundamental Picks

Investors with a horizon of 6-12 months can consider following scrips for their investment. These companies have potential to give higher returns than index over a long term.

DIC India Ltd has achieved its target of Rs. 340
First Leasing Ltd has achieved its target of Rs. 92
GEI Industrial Systems Ltd has achieved its target of Rs. 170
Dena Bank has achieved its target of Rs. 108
Visaka Industries has achieved its target of Rs. 180
Aarti drugs has achieved its target of Rs 135
Indoco Remedies has achieved its target of Rs 465, call given at Rs. 388
Riddhi Siddhi Gluco Biols has achieved its target of 258, call given at 216
Ess Dee Aluminium has achieved its target of Rs 520
TNPL has achieved its target of Rs. 115

Corporate News

Suzlon would acquire the tower business division of fully owned unit, Suzlon Towers & Structures, and the operations and maintenance division of wholly owned Suzlon Infrastructure Services. The wind turbine maker said this would help reduce costs, improve materials management and improve operations.

State-owned Oil and Natural Gas Corp (ONGC) will sign an agreement for taking the 25% stake in Kazakhstan's Satpayev oil field by end of February 2011. ONGC Videsh Ltd, the overseas arm of the state-run firm, is to invest about USD 400 million in the prospective Satpayev oilfield in the Caspian Sea. A peak output of 287,000 barrels per day (14.3 million tonnes a year) is envisaged from the 256 million tonnes of reserves in the field.

Siemens has won an order of Rs 127 crore from Jaypee Sports International for equipping the country's upcoming first Formula 1 race track at Noida with electronics race control management systems. This project is scheduled to be completed within the next 10 months. Siemens will supply, design, engineer and commission a special electronics package for the F1 race track.

Economic Updates

Chairman of the empowered group of State Finance Ministers, Asim Dasgupta has said that the government has suffered a loss of Rs 20,000 crore due to Central Sales Tax (CST) in FY11. Dasgupta said that states have requested for 60% CST compensation from the centre while they have registered 30% VAT (value-added tax) growth. On an optimistic note, he said that GST rate structure will be discussed in subsequent meeting with the FMs. He also added that state FMs will request for an early release of compensation from centre.