Markets may open in the green following upbeat global cues, but they may give up some gains as investors turn cautious ahead of Infosys results which will be reported on Wednesday morning. The Nifty futures on the Singapore Exchange advanced 40 points, at 5,040.
Overnight, Wall Street rallied 3% on Monday, extending gains into a second week as Germany and France jointly decided to recapitalize debt ridden banks by the end of the month. The Dow Jones industrial average gained almost 3%, the S&P 500 Index gained 3.4% and the Nasdaq Composite Index added 3.5%.
In Asia, the Japan's benchmark Nikkei average opened up 1.5% on Tuesday morning, the Hang Seng index rallied over 3% and Shanghai Composite was up 1.3% with financials and exporter shares leading the gains.
Markets rallied 2% yesterday on back of short covering and fresh buying across the board. On the charts, the Nifty may see immediate hurdle at 5,050 levels. "positive bias is seen above 4,925 levels, acceleration of uptrend will be witnessed to the levels of 5,200 on the close of 5050," said Shrikant Chouhan, Head of Technical Research from Kotak Securities. If the Nifty breaks 4,830, selling pressure may resume added Chouhan. Corporate earnings will be closely watched and they may provide further direction to the markets.
Telecom stocks will be in the limelight today on account of the Draft Telecom Policy announcements made yesterday that proposed infrastructure status for the sector, suggested rationalization of taxes and levies besides removal of roaming charges.
Among individual stocks - ONGC will also be in focus today after the company said net profit will drop by over 47% to be Rs 10,000 crore. Provogue India could be on the buzzer today after one of its promoters pledged 24 lakh shares of the company. UB Holdings Ltd (UBHL), which holds the three main group companies - United Breweries, United Spirits and Kingfisher Airlines is set to raise its borrowing powers by another Rs 1,000 crore, the stock will also be in the lime light today.
On Monday, foreign institutional investors were net buyers of Rs 211 crore in cash, while domestic institutional investors were net sellers of Rs 37 crore.
