Top 10 Stock Market action to look out for today

1. Domestic shares are likely to trade with an upward bias on Wednesday as a strong close during late trade the previous day may continue its momentum in early deals. Traders expect the Nifty to face a resistance in the 8,430-8,450 zone and turn weak if it slips below 8,320 levels on an intra-day basis.

2. The overhang from the EU-Greece debt payment crisis will prevent leading indices from showing major gains but the impact on India is likely to be muted as just 0.1% of Indian exports go to Greece. However, fears of a major contagian remain if a global investment bank falls to its knees due to the expanding crisis.

3. Market action is likely to refocus on earnings as July will see listed companies report their first quarter performance. Sectors such as Software, Pharma and Banking will hog the limelight. The report on government's spending in May shows that expenditure on roads has surged 7.4 times year-on-year to `10,000 crore. This augurs well for road construction companies such as KNR Constructions.


STOCK ACTION:

4. Auto stocks such as Maruti, Tata Motors and Hero Motors will report their monthly sales numbers for June today

5. RELIANCE INDUSTRIES: Global brokerage CLSA has raised its price target on the diversified petrochemical giant to `1,300 from `1,150 while maintaining its BUY stance on the stock. CLSA states that new projects worth $25 billion are coming onstream in the next 18 months which may help the stock price double over the next three years.

6. BPCL: Brokerage Credit Suisse has raised its price target on the PSU oil refining-marketing giant to `1,000 rupees from `870 and maintained its ``OUTPERFORM'' stance on the stock. A divestment by the government to bridge its fiscal deficit can help the medium-term outlook on the company, says the report.

7. EICHER: CLSA has maintained its BUY recommendation on Eicher Motors with a price target of `21,800. The brokerage says Eicher, which makes the iconic Royal Enfield bike, has been able to cut down on the waiting period of its motorcycle thanks to higher supplies and expansion in the network. The demand for its heavy duty two-wheeler continues to remain very strong, the report adds. Royal Enfield remains a long-term structural story, it says.

8. GLENMARK: Brokerage BoFA ML has raised its price target on mid-sized Glenmark Pharma to `1,100 from `1,075 per share and maintained its `BUY' stance on the Mumbai-based company. BoFA ML expects Glenmark's margins to grow and cash flows in improve over the next three years on the back of its drugs pipeline aimed at the US markets. The approval for `Zetia' is positive for Glenmark and it will contribute $200 million in profit for Glenmark and Par Pharma.


SECTORAL ACTION:

9. Software and Pharma shares will see the lion's share of action this quarter as earnings at top five IT companies may show a -1.3%-4.2% growth. April-June is a seasonally strong quarter for companies such as Infosys, TCS and HCL Tech but wage hikes and rising visa costs may mute earnings at these IT majors.

10. Cipla, Cadila and Torrent Pharma are likely to report their highest ever pre-tax earnings this quarter.

(Image: Indiatimes)