5 companies to watch out for in the markets today

The Nifty is likely to remain firm but in a sideways trend on Tuesday despite strong Asian cues. Some local buying is likely to spill over from the previous day as investors look for beaten down valuations after the markets overcame the Greek-EU vote.

The forthcoming earnings season, starting with TCS later this week, and the spread of the monsoon are likely to impact markets in the short term. The Nifty is likely to face resistance at 8,570 levels on the upper side, while no long positions should be held if the Index dips below 8,420 levels. However, foreign institutional investors were net sellers on Index futures on Monday, pointing to the possibility of a slight dip on the Nifty today.

Stocks closed in positive territory yesterday, led by export-oriented software, pharma and textiles companies, as the bulls took advantage of a gap down opening on the Nifty to buy into lower prices. This action is likely to be followed up in trade today.

STOCKS TO WATCH:

NETWORK18 MEDIA AND INVESTMENTS: Promoter Reliance Industries Ltd. said it will sell 3.25 crore shares, or 3.12 percent stake, in the company to bring its aggregate holding down to 75 percent as per government regulations. The sale will fetch roughly 204 crore rupees.

POWER GRID CORPORATION: Clears 2,247 crore rupee investment plan for the third phase of interstate electricity transmission project

STERLITE TECHNOLOGIES: To bid for a defence contract worth 7,000 crore rupees.

PAINT STOCKS: Asian Paints, Akzo Paints, Berger Paints and Shalimar Paints etc are likely to enjoy the bounce thanks to muted crude oil prices that form a large percentage of their raw material costs.

CEAT TYRES, J K TYRES: Buying may resurface on such beaten down companies owing to muted crude oil prices. Tyre companies use a lot of crude intermediates as their raw materials.

(Image credit: Indiatimes)