Eight stocks in focus in Tuesday morning trade

NEW DELHI: Indian markets are likely to trade in a range with a negative bias on Tuesday tracking muted global cues. The immediate support level for Nifty is around 5360.

“The Nifty is expected to bounce before starting the next leg down till 5360. In this period the key support will be near 5360 and resistance will be at 5560,” said Somil Mehta, Senior Tech Analyst (Equity) at Sharekhan.

“The Nifty has broken the previous swing low forming lower tops and lower bottoms on the daily chart. The short-term bias for the Nifty has changed to negative for a target of 5220 with reversal around 5611,” he added.

Mehta is of the view that the medium-term outlook remains negative because the Nifty has closed below the 20-weekly moving average (WMA) and the 40-WMA, 5839 and 5775 respectively.

Here is a list of eight stocks which are likely to remain in focus in morning trade:

Reliance Communications Ltd, after the telecom major said that it is open to new acquisitions and will explore consolidation opportunities in the telecom market, which is expected to see hectic M&A activity.

Union Bank of India, after the state-run bank said it will review lending rates within 10 days amid rising cost of fund and stress on margin.

Siemens Ltd, the flagship company of Germany-headquartered Siemens AG, said it has won two contracts worth Rs 144 crore for improving power distribution in Bangladesh.

Coal India Ltd, after five central trade unions represented by INTUC, BMS, HMS, AITUC and CITU have served a three-day strike notice from September 23rd to September 25th against the government's plan to divest an additional 10% in Coal India and for not settling a host of some 25 other demands.

ONGC, after its overseas arm ONGC Videsh Ltd is mulling exercising its pre-emption rights to block China's Sinochem Group from buying 35 percent interest in Brazilian oilfields for USD 1.54 billion.

Deccan Chronicle Ltd, after IDBI Bank and Kotak Mahindra Bank have locked horns over the sale of assets of the debt-ridden Deccan Chronicle, with each contesting the other's claim to key trademarks of the Hyderabad-based media company.

Axis Bank Ltd, after the private sector bank increased benchmark lending by 0.25 per cent to 10.25 per cent making costlier the home, auto, corporate and other loans linked with base rate or the minimum lending rate.

Ramky Infrastructure Ltd, after the company reported Rs 34 crore loss for the quarter ended June 30, 2013 due to higher provisioning.