Top Stock Market action to look out for today

The Nifty is likely to remain in a bear grip on Wednesday as stocks across the world grapple with China's sudden 2 percent devaluation of its currency on the previous day. Market action will be stock specific and earnings related.

The SGX Nifty signals a 67-point downtick at opening for Nifty futures today.

Overseas cues are mostly bearish in the wake of China's currency moves. Major Indices in the US dropped between 1.-1.3 percent on Tuesday. Losses on top European indices totalled 1.1-2.7 percent. The trends in the commodity space differed. Crude oil futures slipped to 6-year low on fears of a slowdown in Chinese demand. Gold and Silver futures inched up on modest safe-haven demand, while the metals space remained weak. Markets in Japan and Hong Kong are down more than 1 percent on Wednesday, while stocks in Shanghai inch up.

Meanwhile, the Nifty Index closed at 8,462 points, down 63, on Tuesday on intense selling in heavyweights such as State Bank of India, post its earnings. The index's 200-day moving average stands at 8,450. The Nifty's support levels are seen at 8,416-8,289 and the resistance is pictured at 8,530-8,600.

The sentiment was bearish in the cash market. Foreign Institutional Investors totalled net sells of `737 crore rupees on Tuesday, their 3rd day of sales and the biggest sell number since July 28. Net sales of domestic institutions stood at `131 crores. The derivatives space saw negative action. Traders made net sales worth 858 crore rupees for Index Futures; Net sales of 91 crore rupees for Stock Futures; Purchases of `1,257 crore rupees for Index options and net sales of 31 crore rupees for Stock Options.

Major earnings today are from Coal India, JSPL, Ashok Leyland and Aurobindo Pharma.

Major delivery based trades were seen on Bosch, Infosys and Tech Mahindra. These shares also showed an uptick in price. Heavy delivery based sales were seen in State Bank of India, post earnings; Tyre stocks, FMCG shares and in metal companies.


STOCKS TO WATCH:

HINDUSTAN PETROLEUM, OMCs: Falling crude oil prices aiding local refiners.

EARNINGS RELATED: Tata Steel, NMDC, Sun Pharma, Aegis Logistics, Graphite India and Ansal Properties. State Bank of India reported refinancing details under the 5:25 scheme after markets shut on Tuesday.

Image credit: Indiatimes