Markets likely to open lower amid weak global cues

Indian stocks are likely to open lower in early trades today tracking weak global cues and would remain volatile within a range thereafter.

Benchmark US share indices ended over 1.2 per cent lower on Wednesday on worries that the US Federal Reserve may start reducing its stimulus even as the slowdown in the economy continues.The Dow Jones Industrial Average ended down 217 points or 1.4 per cent at 14,960. S&P 500 ended down 22 points or 1.4 per cent at 1,609 and Nasdaq Composite ended down 44 points or 1.3 per cent at 3,401.

Stocks in Asia were trading mixed in early trades on Wednesday amid weak overnight cues from the US. The Nikkei recovered from its early lows and was up 0.9 per cent on value buying after the recent correction, South Korea's KOSPI eased 1.5 per cent, Straits Times slipped 0.8 per cent while Taiwan Weighted was down 0.5 per cent

At 800 hrs Indian Standard Time the SGX Nifty was down 48 points at 5,891.

According to technical experts, a bottoming process is visible on charts for near term, however traders must buy on dips with a strict stoploss below 5880, as trade below this would certainly open doors for 5820. Intraday trading Levels Buy Above:  5936 Resistances at 5944, 5956 and 5975 Sell Below: 5912 Supports at 5904, 5892 and 5872.
   
Index heavyweight Reliance Industries will be in action ahead of its 39th Annual General Meeting later today. The stock will be in action as the company will unfold its business plans going forward even as shareholders are seeking answers to the performance of the company's oil and gas exploration and production business.

Mahindra & Mahindra will be in action after the company late Wednesday marked the entry into the premium hatchback segment with the launch of Verito Vibe designed and developed in-house. The Vibe will be a challenge to the market leader Maruti Suzuki which dominates the segment with the Swift.

Shree Ganesh Jewellery will see some activity after the company announced that the board has allotted 58,00,000 equity shares at Rs 150 per share (which includes a premium of Rs 140 per share) to the promoters/promoter group. The issue price is nearly at a 50% premium to yesterday's closing price of Rs 94.70 on the BSE.

Deccan Chronicle may see some action after the company reported a net profit of Rs 14.82 crore for the Jan-Mar quarter compared with a loss of Rs 2.21 crore in the previous quarter (Sep-Dec 2012).