Indian market face heavy selling pressure throughout the day and closed with almost 2.5% losses. Realty and FMCG appeared as majority losers followed by Auto, Banking and Metals. The Sensex closed at 18008, down 441 points from its previous close, and Nifty shut shop at 5395, down 131 points. The CNX Midcap index was down 1.2% and the BSE Smallcap index was down 1.6%. The market breadth was negative with advances at 296 against declines of 1004 on the NSE. The top Nifty gainers were Bajaj Auto, Jain Irrigation, HMT and Aurobindo Pharma and prime losers included Mahindra & Mahindra, Kotak Mahindra, Sun Pharma and ITC. The FIIs were net buyers with investment worth Rs 144.04 Cr (prov. cash market fig)

In the next session, 5348 as a crucial level in NIFTY, sustaining below this level it may test 5230 although 5275-90 may act as minor support levels. 5435-5454 may act as strong resistance in any pull back in NIFTY. Auto and Realty may face major selling pressure while Oil-Gas and Fertilizers may show strength.

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

Mozambique has awarded India's Jindal Steel & Power a 25-year licence to explore and mine for coal in the northwest Tete province, in return for a $180 million investment. Jindal will invest $180 million in the Tete coal mine, as part of a project that will cover 2, 1540 hectares and directly employ 1,500 people.

Orient Paper & Industries (OPIL) cleared the company's proposal to set up a Rs 1,473-crore three million tonne per annum (mtpa) greenfield cement manufacturing facility at Gulburga, Karnataka. The board also approved plans to set up a 50 MW power plant entailing an additional investment of Rs 247 crore. Information trickling in suggests OPIL has already obtained the Karnataka government’s approval for the proposed project as well as its goahead to buy some 1500 acres-plus for the same.

Reliance Power’s Rs 16,000-crore ultra mega power project at Sasan has qualified for carbon credits, which will help it earn over Rs 2,000 crore, or 40% of its equity in the next decade. The 4,000-MW coalfired Sasan power project using supercritical technology has been registered with clean development mechanism executive board of United Nations Framework Convention on Climate Change.

Country's foreign exchange reserves dipped by $223 million to $299.17 billion driven by a drop in its foreign currency assets. The total reserves stood at $299.40 billion the week before. Foreign currency assets, came down by $269 million to $269.28 billion for the week ended January 28.

The country's gold reserves remained unchanged at $22.47 billion, while both special drawing rights (SDRs) and reserve position in the IMF improved marginally. The SDRs were up $32 million to $5.19 billion, while India's reserve position in the IMF increased by $14 million to $2.262 billion.

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.