"The resilient performance of TCS in the March quarter and the robust order momentum reported by HCL Technologies last week tend to highlight the lacuna in the growth strategy of their close peer Infosys, which has shown relatively slow growth in the past few quarters," an ET report said.
The Nifty ended near its crucial support levels after profit booking intensified across the board following weakness in the European markets on Monday.
Traders mounted bearish bets on Nifty futures on Monday as the market undertone turned bleaker on worries about the decision by Macquarie's hedge fund to wind up derivative positions on the National Stock Exchange which may prompt other foreign institutions to follow suit.
"Since we have closed at the low of the day, we could see some amount of short covering on Tuesday. But it is difficult for the index to cross 5,230 very easily. The breakdown may not happen tomorrow morning but it could take a couple of days before it happens," said Ashwani Gujral of ashwanigujral.com.
"The narrow range has broken down with some force and even if we pause around here and there, you will finally go through 5,180. For a trader it is not really bad," added Ashwani.
Overnight, US stocks fell on Monday as political turmoil in Europe and euro zone PMI data which slipped to its 5-month low reignited fears about the euro zone's ability to push through measures.
"The Dutch prime minister tendered his government's resignation on Monday after Dutch officials failed to agree on budget cuts. Adding to the uncertainty was a Sunday vote in France that threw the presidential race wide open," a Reuters report said.
"The renewed worries came as the euro zone's business slump deepened at a far faster pace than expected in April. The Markit PMI fell to a five-month low, confounding forecasts for a rise," added the report.
The Dow Jones industrial average was down 102.09 points, or 0.78 percent, at 12,927.17. The Standard & Poor's 500 Index was down 11.59 points, or 0.84 percent, at 1,366.94. The Nasdaq Composite Index was down 30.00 points, or 1.00 percent, at 2,970.45.
Asian shares fell on Tuesday as political uncertainty and weak PMI data in Europe raised fears the euro zone could struggle to push through austerity measures.
"U.S. crude prices were steady on Tuesday, trading at just over $103 a barrel, as renewed fears about the health of the euro zone economies and political uncertainty countered concerns over a production stoppage in the North Sea and potential disruptions Of Iran supply. Brent June crude settled down 5 cents at $118.71 a barrel," a Reuters report said.
Japan's Nikkei 225 index was trading 0.4% lower at 9,497.62 and Hong Kong's Hang Seng index was trading lower at 20,731.12, up 0.5%. South Korea's Kospi index was trading 02% lower at 1967.45. China's Shanghai index was trading at 2412, up 1.07%.
At 08:00 a.m., Nifty India stock futures in Singapore were up 50 point at 5,237.00, indicating a positive opening in the domestic market.
Important results to watch out today:
ING Vysya Bank Ltd, Petronet LNG Ltd, Sesa Goa Ltd and Polaris Financial technology Ltd.
Recommendation from Prakash Gaba, CFT, prakashgaba.com
Jet Airwaays Ltd is a 'SELL' call with a target of Rs 325 and a stop loss of Rs 350
Reliance Power Ltd is a 'SELL' call with a target of Rs 100 and a stop loss of Rs 111
Recommendations from Vijay Bhambwani, Author, CEO, BSPLindia.com
Ashok Leyland Ltd is a 'BUY' call with a target of Rs 32.50 and a stoop loss of Rs 30.00
Reliance Capital Ltd is a 'SELL' call with a target of Rs 320 and a stoop loss of Rs 332.00
Stocks to watch:
UltraTech Cements Ltd will be in focus after the cement major reported a net profit of19 per cent in the March quarter due to higher production. The board has recommended a dividend of Rs 8 a share, leading to a total outgo of Rs 255 crore, including tax of Rs 36 crore.
United Phosphorous Ltd will be watched after the Antimonopoly watchdog Competition Commission of India (CCI) has slapped three Aluminum Phosphide Tablets (APT) manufacturers fine of Rs 317.91 crore, which includes Rs 252.44 crore to United Phosphorus (UPL) for cartelization and price manipulations.
Workers at the Manesar plant of Maruti Suzuki India Ltd, the country's biggest car maker, have demanded that the company double salaries, raising the prospect of another spell of labour trouble after union strife disrupted production last year.
No comments:
Post a Comment