Top 6 Stock Market action to look out for today

The Nifty's uptrend is likely to continue as strong overseas cues from both Wall Street and Asian markets coupled with weak commodity prices push the Index into a higher orbit.

Major US indices closed with gains of between 1.1 and 1.5 percent overnight. Asian markets such as Japan and Australia are in a strong updraft. Adding fuel to this sentiment is a further weakening in prices of crude oil futures and gold futures. All put together will ensure that the Nifty has a modest upmove in early deals at least.

The Nifty is likely to face its first resistance at 8,560 levels and has a strong support at 8,350. Nifty Futures were flat in Singapore's trade. Meanwhile, the Index closed at 8,459, up 99 points and at the day's high on Monday.

Delivery based buying was observed in Axis Bank, Infosys, HDFC and Aurobindo Pharma on Monday.

The trend is positive on FII inflows as well. Foreigners purchased 528 crore rupees worth of stocks in the cash market on Monday, their first major purchase number after four sessions. The mood wasn't so bullish in the derivatives space, where a paltry 15 crore rupees worth of Index futures were bought while 672 crore rupees worth of sales were seen on stock futures.

Meanwhile, SEBI has tweaked contract sizes in the derivatives space, making it more friendlier to trade.

STOCKS TO WATCH:

Dr. REDDY'S: launches a generic version of an anti-dementia drug in the US. Market estimated at $1.4 billion for 8-10 players.

GRUH FINANCE: First quarter profit rose 20 percent to 50.3 crore rupees. Loan portfolio jumped 26 percent to 9,329 crore rupees.

BANKING STOCKS: May take a hit as bond yields inch up after CPI Inflation was higher than estimated at 5.9 percent in June

Global brokerage Credit Suisse has downgraded several stocks such as Eicher, Thermax, Bajaj Finance and Page Industries. It recommends clients shift these positions to M&M Fin Services, Larsen & Toubro, Asian Paints and Maruti in the large cap space.

Power Sector Stocks: India's largest lender, State Bank of India, has informed the Finance Ministry that the slowdown in the power sector may result in a huge rise in the banking industry's non-performing assets over the next couple of months, leading to a further erosion of confidence in the banking space.

TITAGARH WAGONS: Railways equipment maker Titagarh informed BSE it had purchased a company in Italy. No financial details were shared.

(Image credit: Indiatimes)