Top things to look out for in the markets today

The Nifty is likely to remain under the bears’ grip on Tuesday as weak global cues continue to pressure stock prices ahead of the 2-day FOMC meeting in the US. Heavy fund sales and the monthly futures and options expiry later this week will also weigh on local stocks.

Traders are unlikely to push Buy buttons as they await the judgement of the US Fed’s rating setting panel to meet today and on Wednesday on the health of the US economy. Meanwhile, the SGX Nifty points to a 15-point gap down opening for the Nifty on Tuesday.

Global cues remain bearish. Major Indices in the US dropped between 0.6 percent and 1 percent, losing ground for the 5th day. Stocks in EU were hit badly. Drops amounted to 1.1-2.4 percent on Monday.

Markets in Asia are trading with minor losses on Tuesday morning after Monday’s carnage on Chinese equities which saw their main index plunge 8.5 percent. Cues from the commodity space are modestly positive. Gold Futures posted a fresh 5-1/2 year low; Copper, Oil Futures are weak as well.

Meanwhile, the Nifty Index closed at 8,361 points, down 160 points on Monday. The Index ended below the crucial 200-day moving average, which means that the bears have a firmer grip on the market compared with bulls.

Sentiment was hit in the cash market as well. Foreign Institutional Investors posted net sales of 860 crores worth in the cash market on Monday compared with net buys of 239 crore rupees by domestic investors. The derivatives space saw sales worth 1,414 crore rupees for Index Futures; Sales of 799 crore rupees for Stock Futures; Purchases of 1,540 crore rupees for Index options and net buys as well of 282 crore rupees for Stock Options.

Major Earnings today include PNB, Maruti and HDFC. Delivery based selling was seen in Axis Bank, ICICI Bank and Lupin on Monday.

STOCKS TO WATCH:

TECH MAHINDRA: CLSA maintains Sell. Target at `450. Brokerage says Tech Mahindra posted quarterly sales that were in line with forecasts. But margins weaken.

AMBUJA CEMENTS: CLSA Maintains Buy, Target `300. Cuts FY15 - 17 estimates by 7 - 17% but believe worst over for sector.

BHARTI AIRTEL: To cut staff by 15-20 percent in its African operations in a bid to turnaround the loss-making business, reports the Economic Times.

INDIAN HOTELS: To open 15 new properties and add 1,747 new rooms in FY16

INFOEDGE: Credit Suisse cuts target to `870 from `890, Maintains Neutral

(Image credits: Indiatimes)