Top stock market action to look out for today

The Nifty is likely to see range-bound trade on Tuesday as overseas cues are modestly positive and traders may remain buyers in early deals just as they were in the latter session the previous day. Metals and PSU banking stocks may continue to see buying interest.

The SGX Nifty signals a 23-point uptick at opening for Nifty futures today.

Overseas cues are positive. Major US indices rose between 0.4-0.9% on Monday. European indices remained flat to weak recording a gain of 0.4% to a fall of 0.6 percent overnight.

The commodities market remains weak, which is positive for Indian equities. Oil Futures remain at 6-year lows as Japanese GDP contracts, putting pressure on demand from Asia's large consumer. Gold and Silver futures fell in trade. Copper Futures were down as well. Equity markets in Japan, China and Hong Kong as gaining ground in early deals on Tuesday.

Meanwhile, the Nifty Index closed at 8,477 points, down 41 points on short sales on Monday. But the index showed a smart recovery from intra-day lows due to heavy buying in index-based PSU banking stocks: Bank of Baroda, State Bank of India and Union Bank.

The sentiment remains positive in the cash market. Foreign Institutional Investors and large domestic players were net buyers for the second day, pooling in 142 crore rupees and 184 crore rupees respectively.

The derivatives space saw muted action. Traders made net sales of 601 crore rupees for Index Futures; Net sales of 37 crore rupees for Stock Futures; Purchases of `550 crore rupees for Index options and net sales of 3 crore rupees for Stock Options.

Huge delivery based buying was seen in Bank of Baroda, Canara Bank, Bank of India and IDBI while Kaveri Seed saw heavy delivery based selling coupled with a sharp fall in prices.

STOCKS TO WATCH:

INFOSYS: BNP Paribas raises price target to 1,320 rupees. Maintains Buy.

COAL INDIA: Puts a price target of `489 rupees on the miner.

RELIANCE INFRA and TATA POWER: CAG indicts these two companies for inflating costs, say media reports quoting the CAG.

TATA COFFEE, CCL Pdts: Government mulls 100 percent FDI in coffee plantation owners.

(Image credits: Indiatimes)