The markets are likely to open on a cautious note despite positive global cues. The fear that the income-tax (I-T) authorities would go after participatory note investments in equities saw the benchmark stock indices take a beating on Monday.
Overnight, the Dow Jones industrial average rose 1.2 per cent to 13,242 and the S&P 500 Index gained 1.4 per cent to 1,416 levels.
Asian stocks rebounded on Tuesday and the dollar eased after Federal Reserve Chairman Ben Bernanke said ultra-loose monetary policy was still needed to reduce unemployment even though the US economy has shown signs of improvement. Japan's benchmark Nikkei average opened up 1.3 per cent at 10,152.90, while the broader Topix gained 1.2 per cent to 862.
Back home, the Nifty is likely to seek support around 5,145-5,120, while it can face resistance around 5,220-5,245, technical analysts suggest. At 820 Indian Standard Time, the SGX Nifty was trading at 5,259 levels – up 66 points.
Among individual stocks, keep a tab on sugar companies. Reports suggest that the government has decided to allow the export of another 1 million-tonne of sugar under the open general license.
In the primary markets, NBCC’s initial public offer closes today, while MT Educare opens for subscription.
Keep a tab on auto stocks such as Maruti, Tata Motors and M&M as the Maharashtra government has hiked the tax on diesel and petrol cars sold in the state.
Tata Metaliks’ board has approved an issue of preference shares worth Rs 100 crore to its promoter, Tata Steel.
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