Top Stock Market action to watch out for today

The Nifty will experience selling pressure at the start of trade on Tuesday as weak overseas cues and a rise on crude oil prices hold back traders from taking long positions on local stocks. Auto and cement companies will be in focus as they report monthly sales for August.

The markets are also unlikely to be impressed with India's first quarter GDP growth of 7 percent as it fell below the 7.5 percent expansion recorded in the fourth quarter.

Meanwhile, the SGX Nifty Futures signal a 105-point down tick in opening trades on Nifty futures. Markets in Asia are down substantially with stocks in Japan, Hong Kong and China dropping between 1.1-4.6 percent on weak Chinese economic data.

Major Indices in the US lost between 0.7-1.1 percent as an official from the US Federal Reserve said the chances of increasing interest rates in September remain on the table. Stocks in Europe were mixed with indices falling 0.5 percent to rising 0.9 percent. Crude oil futures saw some profit booking but have jumped substantially from their 6-1/2 year lows, which is a cause of worry for Indian traders. There was bit buying on Gold, Silver and Copper futures

Meanwhile, the Nifty Index fell 31 points to 7,971 points on Monday. Support is pictured in the 7,770-7,576-point band while resistance is seen at 8,050-8,200 range.

The picture in the cash markets is mixed. Foreign Institutional Investors resumed selling with their net sales amounting to 550 crore rupees. Net purchases made by domestic institutional investors totaled 479 crore rupees.

The bulls upped their stance in the derivatives market. Traders were net buyers of 539 crore rupees for Index Futures; Net purchases of 659 crore rupees for Stock Futures; Net buys of 1,401 crore rupees for Index options and net buys of 56 crore rupees for Stock Options.

Delivery based buying was seen on Sun Pharma, Ajanta Pharma and Divi's Labs. Selling was observed on Voltas and Crompton Greaves.

STOCKS TO WATCH:

HDFC BANK: Cuts base rate to 9.35 percent.

Auto and Cement companies: Monthly despatches and sales numbers for August

Airlines Companies: Cut in Jet fuel prices.

Oil Refiners: Rise in global crude oil prices.

Image credit: Indiatimes