Huge buying over BANKING, METALS, AUTO and IT STOCKS led INDIAN indices to good gains in the final hour of the session. SENSEX closed at 18257, up 208 points and Nifty at 5479, up 65 points from the previous close. CNX MIDCAP index was up 0.8% and BSE SMALLCAP index was up 0.7%. The market breadth was positive with advances at 776 against declines of 506 on the NSE. Top gainers included HINDALCO, TATAMOTORS, HDFC, HDFCBANK, ONGC, SUNPHARMA, HCLTECH and RANBAXY. Top losers are listed as RCOM, RIL, M&M, CIPLA, BHARTIARTL, SUZLON, IDEA and SIEMENS.

In the next session NIFTY might face minor resistance around 5510, sustaining above this level it is likely to test 5440. Traders may note that 5555 may act as a strong resistance level. Traders are suggested to buy at dips taking 5440 as STOPLOSS in NIFTY SPOT. BANKING, PHARMA and METALS may attract buying.

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.

Steel Strips Wheels (SSWL) has received an export business for nearly 5,000 wheels from two different company's in Germany & UK. One of these company is a leading tyre & wheel assembler catering to the OE trailer market in Europe. The second company caters to after market in Europe.

Punjab National Bank has launched 'PNB Festival Bonanza Offer 2010' which is valid from 20 August 2010 to 31 December 2010. Under the said offer, housing loans upto Rs. 50 lakhs will be available at discounted rate of interest of 8.50% under fixed interest rate option (fixed for three years) across all repayment tenors, with a proviso that applicable rate will be base rate in case it crosses 8.5%. Besides, full waiver of processing (upfront) fee & documentation charges. Margin also stands reduced to 15% for housing loans upto Rs. 20 lakhs. A rebate of 0.50% p. a. in rate of interest is also offered to prospective car loan borrowers under fixed option.

Tantia Constructions has received a project from Chief Engineer, Metro Railway, Kolkata for execution of civil engineering works of PSC via duct between Noapara and Dum Dum Cantonment and various Civil works at Noapara in connection with integration of Airport Line with Metro Railway for worth Rs. 50.53 crore.

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.