Indian market faced huge selling pressure and almost all sectoral Indices closed in red. Banking and Realty again appeared as worst performer. With weak global cues, Sensex closed at 19696, down 238 points from its previous close, and Nifty closed at 5903, down 72 points. The CNX Midcap index was down 1.7% and the BSE Smallcap index was down 3.3%. The market breadth was negative with advances at 148 against declines of 1158 on the NSE. The top Nifty gainers were BPCL, ACC, Ranbaxy and GAIL and losers included Axis Bank, Reliance Capital, RCom, and IDFC.

Market Outlook

In the next session, Nifty may face high resistance around 5959, and breaching of 5868 may cause heavy selling in the market. Banking and reality may face more selling while selected IT and Petroleum stocks may attract buying at lower levels. Traders are suggested to sell at rise as long as NIFTY is trading below 6000.

Expected Bullish Stocks

BPCL
JISJALEQS
HEXAWARE
HPCL
MOSERBAER
ACC
HINDZINC
WIPRO
TCS
HCLTECH
RANBAXY
GAIL
DRREDDY
ONGC
IOC
TECHM
JINDALSTEL
EIH

Expected Bearish Stocks

IRB
RENUKA
ALBK
UNIONBANK
BGRENERGY
FINANTECH
CENTRALBANK
LICHSGFIN
VIJAYABANK
IOB
IDBI
SYNDIBANK
WELCORP
UCOBANK
CANARABANK
AXISBANK
DBREALITY
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
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 News

Country's largest power producer NTPC has earmarked a whopping Rs 1, 50,000 crore investment for sourcing equipment for its power projects in the next fiscal, the deliveries of which will be made over five years. The order is valued at about Rs 1, 50,000 crore, and these equipment are for the 75,000 MW capacity that NTPC plans to add by 2017.

CESC has forayed into hydel power business and plans to invest Rs 630 crore in its first project. Around 70% of the funds for the project will be raised via debt and remaining 30% through internal accruals. The company expects financial closure in 12-15 months.

IT services provider HCL Technologies Vice-Chairman Vineet Nayar has sold his 0.146 per cent stake in the company for Rs 42.73 crore. Nayar has divested his 0.146 per cent stake in the company by selling 10 lakh shares, held under the family trust on December 7 2010.

Oil companies plan to raise petrol and diesel prices by Rs 2 a litre after a week as crude touched a two-year high of $90 a barrel on Tuesday, a move that will boost the finances of state-run firms but stoke inflation.

Economic Updates

Economic growth is likely to cross 9 % in the current fiscal on the back of better than estimated 8.9 % expansion in the first two quarters, Finance Minister Pranab Mukherjee said in a mid-term analysis of the economy for fiscal 2010-11. "Growth rate for the fiscal 2010-11 will be 8.75 % plus minus".