After a gap down opening Indian market traded with marginal gains in the earlier hours but shed all gains in the final hour of the session and closed in red. IT, CAPITAL GOODS, FMCG and REALITY appeared as major losers. SENSEX closed at 17868, down 123 points and Nifty at 5367, down 41 points from the previous close. CNX MIDCAP index was up 0.4% and BSE SMALLCAP index was up 0.2%. The market breadth was negative with advances at 562 against declines of 711 on the NSE. Top gainers included M&M, SBIN, HDFCBANK, TATASTEEL, HDFC, RANBAXY, IDEA and HCLTECH. Top losers were listed as HEROHONDA, BHARTIARTL, DLF, ICICIBANK, TATAMOTORS, ABB, GAIL, SIEMENS and RPOWER.

In the next session, NIFTY may face selling pressure at higher level or if traded below 5350. Traders are suggested to sell at rise as long as NIFTY is trading below 5420. 5270-91 may act as a support level. IT and REAL ESTATE may face selling pressure while OIL-GAS may attract buying.

Investors who have a horizon of 6-12 months can buy the following companies. The companies have potential to ive higher returns than index over a long term.

Bank of Baroda has decided to revise rates of interest payable on term deposits of the bank with effect from 02 August 2010. The members of Enrich Industries have accorded to increase the authorised share capital of the company from Rs. 6.50 crore to Rs. 11.50 crore. The board of Karnataka Bank in its meeting on 30 July 2010, has decided to offer equity shares on rights basis in the ratio upto 2:5, subject to necessary approvals.

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