Indian market faced selling pressure throughout the day. IT-stocks maintained the strength and closed in green, rest all sectors turned red. The Sensex closed at 19647, down 151 points from its previous close, and Nifty closed at 5892, down 51 points. The CNX Midcap index was down 1.3% and the BSE Smallcap index was down 1.5%. The market breadth was negative with advances at 314 against declines of 986 on the NSE. The top Nifty gainers were BPCL, TCS, Infosys and Bharti Airtel and losers included Hero Honda, DLF, Suzlon and Kotak Mahindra.

Market Outlook

In the next session, NIFTY could face selling pressure at rise; 5959-5990 may act as major resistance zone. Sustaining below 5858 (NIFTY) level may attract more selling pressure. Traders are suggested to follow the strategy of selling at rise. Banking and real-estate may face major selling pressure while IT and OIL-GAS may maintain some strength.

Expected Bullish Stocks

IGL
PATNI
BPCL
HPCL
IOC
DABUR
INFOSYSTCH
WIPRO
TCS
MPHASIS
HCLTECH
BHUSHANSTL
BHARTIARTL
AUROPHARMA
NTPC
AREVA
T&D
ACC
APOLLOTYRE

Expected Bearish Stocks

UCOBANK
INDIANB
ORIENTBANK
SCI
JETAIRWAYS
KFA
RCOM
TITAN
DLF
HDIL
IBREALEST
PANTALOONR
IFCI
SBIN
PNB
ONGC
INDUSIND
ICICIBANK

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
Ballarpur industries has achieved its target of Rs 43
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 Highlights

The Chennai-headquartered VA Tech Wabag Ltd in joint venture with Nagarjuna Construction Company International LLC, bagged an order worth Rs 170 crore from Oman based Majis Industrial Services SAOC. Wabag is scheduled to commence construction of sea water desalination plant on the basis of RO technology for Sohar Industrial Area, Oman from January 2011 and the scheduled completion is around 20 months.

Indian steel ministry is in talks with the South African government for buying manganese ore mining assets for state-run

Manganese Ore India Ltd (MOIL). Our government is talking to the government of South Africa and are requested them to allot us certain mines.

Lanco Infratech's Australian unit has agreed to acquire Griffin Coal Mining Co and Carpenter Mine Management (Griffin Coal) for an undisclosed sum. West Australia-based Griffin Coal owns thermal coal mines with a production of more than 4 million tonnes per annum and can be ramped up to more than 15 million tonnes in the near term.

Economic Updates

Moves by state-run oil retailers to raise petrol prices and the possibility that diesel will increase too, make the Reserve Bank of India's (RBI) fight against inflation more difficult and piles more pressure onto a beleaguered government. Indian Oil Corp, Bharat Petroleum and Hindustan Petroleum will raise petrol prices by about 5.6 per cent this week due to surging global crude prices.