Pre-market: Five stocks to watch out for today

Mixed global cues to keep markets subdued

Markets are likely to open on a flat note tracking mixed global cues. Overnight, the Dow and S&P 500 were little changed on Monday while the Nasdaq slipped, as investors took profits mostly in the technology sector ahead of possible policy action from the Federal Reserve later in the week.

The benchmark S&P 500 index rose 2.2 percent last week to hit highs not seen in nearly five years. Asian shares eased on Tuesday ahead of a key German ruling on the euro-zone's bailout funds and the U.S. Federal Reserve's policy decision, repositioning from last week's rally spurred by heightened speculation for more stimulus globally.

MSCI's broadest index of Asia-Pacific shares outside Japan ticked down 0.2 per cent, with Australian shares down 0.1 per cent and Korean shares down 0.4 per cent.

Japan's Nikkei average opened down 0.7 percent. At 700 am Indian Standard Time, the SGX Nifty was trading at 5,357 - down 19 points.

Back home, according to technical analysts, the bias will continue to remain bullish as long as the index sustains above 5,309. The near support for index is around 5,335. The medium-term target for the index is around 5,450. The NSE index is likely to seek support around 5,355 – 5,345, while face resistance around 5,375-5,380.

STOCKS TO WATCH

Infosys BPO, the business process outsourcing (BPO) arm of Infosys Ltd, on Monday said it had acquired Marsh BPO, the business process outsourcing arm of the US-based Marsh & McLennan Companies, for an undisclosed amount. The stock may continue to remain in focus today.

ITC has raised its holding in EIH by acquiring an additional one per cent stake for Rs 42 crore through open market transactions. This may bring the stock in limelight today.

Tata Communications Ltd will pay greater attention to its managed services business, which is expected to generate a fourth of the company’s revenue from data services in a couple of years, said a top official. The stock may be in focus today.

HDFC has converted the warrants issued along with non-convertible debentures (NCDs) in August 2009 into equity shares.

Citi has upgraded Tata Steel Ltd to ‘buy’ from ‘neutral’, on the back of attractive valuations, after a 32 per cent underperformance versus the Sensex over the past year.

Reliance Industries' flagging KG-D6 gas field may see larger than previously projected drop in production as the company shut eight wells due to water and sand ingress. The stock may be in focus today.

Welspun Energy Ltd said it has tied-up finances to set up a 50 MW solar power project in Rajasthan.