Nifty struggles to hold 5300

Indian equity benchmarks started the trade on a positive note following strong global cues, tracking winning of confidence vote by Greek PM. But indices have not been holding early gains since yesterday - they have been consolidating after a big fall on Monday. The Nifty has been struggling to hold the 5300 level.

IDFC, Sesa Goa, Tata Steel, Reliance Communications, Reliance Infrastructure, ICICI Bank, Infosys, Tata Motors, ONGC, L&T and Reliance Industries were pushing the markets higher in early trade.

However, HDFC, HUL, JSPL, BHEL and BPCL were on sellers' radar.

SBI was down a bit after SBI Chairman said FY12 credit growth was expected to be 16-19% as against 19-20% seen before. "We are witnessing some slowdown in corporate lending," he said.

At 9:20, the NSE Nifty was trading at 5,298, up 23 points and the BSE Sensex went up 69 points to 17,629.

Sensex Erases gains

Equity benchmarks shaved off some gains on the back of profit booking at higher levels. The Nifty could not able to hold the 5300 mark - it was gyrating around the same level. Heavyweights like ONGC, SBI, ICICI Bank and Bharti Airtel came off their day's high.

BSE Sensex was trading at 17,633, up 126 points and NSE Nifty gained 40 points at 5,298.

Nifty bounces back

Indian equity benchmarks bounced back on Tuesday morning - theNifty was inching towards the 5300 level, on the back of stability in global market and after clarification from government on Indo-Mauritius tax treaty. Market had fallen for previous four sessions.

Reliance Communications, Reliance Infrastructure, Reliance Industries, Bharti Airtel, Cairn India, Tata Motors, Sesa Goa, Sterlite Industries, SAIL, DLF and L&T were leading the markets higher.

However, ONGC fell 2%. Cipla, Ranbaxy Labs, Grasim and Ambuja Cements too were on sellers' radar.

At 9:20, the BSE Sensex was trading at 17,620, up 114 points and the 50-share NSE Nifty went up 34 points to 5,292 amid volatility.

Stocks to watch for today

Aditya Birla Nuvo has seen good investor interest after it announced its results which saw its net profit increase by two-folds. The stock on Monday, witnessed selling along with the rest of the market, however, during the second half of the day there was buying in the stock, which helped it close near the high of the day. The stock has a potential of reaching Rs 920, if it can cross the high of Monday of Rs 869.

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Keep a watch on these stocks today. Reuters

GT Offshore has touched the previous low of Rs 205, from which it has rebounded twice. This time the stock has fallen on lower volume, though Monday’s fall was of over 5%. This time too the level of Rs 205 might hold and the stock can bounce back to Rs 225.
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Hindustan Unilever was among the few frontline stocks that closed in the positive zone. The stock is close to its all time high having moved on good volume to Rs 322.55. The stock can touch a new high and touch the Rs 350 levels.
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The low of Rs 1,040 has been held for the last three days by PNB. In the case of a bounce back the stock can move up to Rs 1,100 levels at which it has been consolidating for sometime.
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Though Voltas broke through its support level of Rs 160.50 and touched Rs 157 on Monday, the stock bounced back strongly to close the day at Rs 161.15. The stock can move up to Rs 170 as the fall on Monday was on much lower volume.
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JP Associates continues its fall in line with the market. However, it has now taken support at  its previous low of Rs 78.40. The pattern continues to be bearish and the chances are that a low of Rs 70 can be touched by the stock.
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Bank of Baroda saw good buying during the closing hours of Monday, which helped the stock close at Rs 858.15, only 0.16% lower than the previous close on Friday. The stock can touch Rs 900 if it is able to cross the high of Rs 865 it made on Monday.
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We have a buy call on Hero Honda above Rs 1,755, which fell short of the trigger. However, the stock continues to show some strength. We will maintain our call as it has held on to the price with a target of Rs 1,825.
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Our sell call on REC continues which was triggered below Rs 191.The stock touched a low of Rs 181.20 on Monday, we maintain our price target of Rs 175 for the stock.
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US markets end higher

The US markets finished higher amidst thin trading as fears over Greece's debt crisis subsided and investors snapped up beaten-down stocks.

Dow Jones Industrial Average was up 0.63% or 76.02 points at 12080.38. Nasdaq Composite was up 0.5% or 13.18 points at 2629.66. Standard & Poor's 500 was up 0.54% or 6.86 points at 1278.36.

In economic data to watch out for, existing home sales for May is expected to fall to 4.75 million as compared to 5.05 million in April.

Meanwhile, the FOMC meeting commences today as the US Federal Reserve determines the direction of the monetary policy. The minutes of the meeting would bee keenly watched as the QE2 comes to an end.