Top Market action to look out for today

The Nifty is likely to see volatile trade on Tuesday as a mixed set of cues affect Indian equities. China has devalued its currency, Yuan, by 2 percent in a bid to boost its economy. Its government said the move was a one-time step taken to move towards a more market determined rate for the Yuan.

The SGX Nifty signals a 20-point uptick at opening for Nifty futures today.

There is a strong set of cues either way that will impact local equities on Monday. Major Indices in the US surged between 1.2-1.4 percent on Monday with the Dow Index ending its 7-day losing streak after Berkshire Hathaway agreed to buy aircraft parts maker Precision Castparts for $32 billion. Top European turned gained between 0.3-1.0 percent.

The commodity space has perked up with Crude Oil futures showing a strong $1.5/barrel bounce back on technical causes. Gold Futures remain flat. Copper futures showed a strong 2.8 percent rise after 3 days of losses. Stocks in China have given up early morning gains on Monday while shares in Japanese and Hong Kong markets trade sideways.

Meanwhile, the Nifty Index closed at 8,525 points, down 39, on Monday after an algorithmic basket sale of leading stocks on the Index wiped out all gains in late deals yesterday. The Nifty's support levels are seen at 8,500-8,432 and the resistance is pictured at 8,600-8,637.

The sentiment was bearish in the cash market. Foreign Institutional Investors totalled net sells of `14 crore rupees on Monday, their 2nd day of sales. Net sales of domestic institutions stood at `50 crores. The derivatives space saw some action. Traders made net purchases worth 613 crore rupees for Index Futures; Net sales of 426 crore rupees for Stock Futures; Purchases of `633 crore rupees for Index options and net sales as well of 4 crore rupees for Stock Options.

Major earnings today are from State Bank of India, HPCL, Bosch, Sun Pharma and Tata Steel.

Major delivery based trades were seen on UPL, RECL, Divi's, Wockhardt, IGL, Britannia, Hero Motors and MindTree. These shares also showed an uptick in price.

STOCKS TO WATCH:

EARNINGS-BASED: HPCL, SBI, Bosch, Sun Pharma and Tata Steel.

BIOCON: Biocon-promoted Syngene's IPO lists in the market.

Image credit: Indiatimes