Well it was difficult to answer this question, but knowing that market always provides opportunities for purchase as well as selling, I offered my advice to a freind.
My picks would be
SBI
Satyam
Pricol
KEC infrastructure
For those interested in penny stocks and if they are ready for some big risks and waiting period, the following stocks can be considered.
Continental Controls
Rexnord Electricals
I declare that I own the above two stocks.