Pre-market: Five stocks to watch out for on F&O expiry day

Markets are likely to see volatile trades ahead of the August futures and options expiry today. According to technical analysts, the NSE index looks set to test the 5,250 soon.

The daily momentum oscillators are strongly in favour of the bears, and indicate that the index could look to fill the gap around 5,230.

However, the weekly momentum oscillators are in favour of the bulls. Hence, a sharp pull-back from 5,200-odd levels cannot be ruled out. On Thursday, the Nifty is likely to seek support around 5,265-5,250, while face resistance around 5,310-5,325. At 700 hrs Indian Standard Times, the SGX Nifty was trading at 5,280 levels down 11 points.

Overnight, the US markets ended on a flattish note. In Asia, shares eased and major currencies stayed range-bound on Thursday as investors avoided betting on direction before a speech by U.S. Federal Reserve Chairman Ben Bernanke, with focus on whether there will be any hint about further U.S. stimulus.

MSCI's broadest index of Asia-Pacific shares outside Japan inched down 0.2 percent and Japan's Nikkei stock average opened down 0.1 percent.

Stocks to watch

McNally Bharat Engineering Company has bagged a Rs 122 crore contract from Steel Authority of India's Bhilai Steel Plant. The contract is a part of steel mill's modernisation and expansion plan. Shares of McNally may react to this news.

MphasiS may react to its quarterly numbers after it reported a 11% rise in consolidated net profit at 209 crore for the quarter ended July 2012. It was 189 crore in the same period a year ago.

Lanco Infratech is engaged in talks with private equity firms Bain Capital and Kohlberg Kravis Roberts (KKR) to sell stake in its power business. This could see the stock come back into the limelight today.

Promoters of Southern Petrochemical Industries Corporation Ltd (Spic) will increase their stake by around 12 per cent in the company by infusing Rs 60-70 crore.

The Securities and Exchange Board of India (Sebi) has cleared the twin rights issues of TV18 Broadcast and Network18.

Orchid Chemicals and Pharmaceuticals Ltd (OCPL) has divested its penicillin and penem active pharmaceutical ingredience (API) business and the API facility at Aurangabad, in Maharashtra, along with an associated process R&D infrastructure in Chennai, to Hospira for a total cash consideration of around $ 200 million (around Rs 1,112.59 crore).

Jaiprakash Associates has raised about 835 crore via foreign currency convertible bonds to part finance its existing convertible bonds.

SKS Microfinance has allotted 44.5 lakh shares on preferential basis to Kumaon Investment Holdings. As per the details of the acquisition, Kumaon Investment Holdings will acquire 44.5 lakh shares carrying voting rights equivalent to 4.11%. This may bring the stock into focus.