Markets open lower shrugging of Wall Street gains amid reports that China may hike rates later today. The Sensex is down 43 points, at 19,884 and the Nifty is trading lower by 12 points, at 5987.
Markets have fluctuated between gains and losses through out the week and technical analysts are wary if an uptrend will continue amidst volatility. Technical Analyst Rishi Nathai said, "this time Nifty has broken all the important supports, charts indicate sell on every rise or current market price." If bulls have to be stronger than bears than index has to close above 6150 levels for at least three trading sessions, he added. Technical analyst, Prakash Gaba also reckoned, "technically the market is still in a sell mode but volatility and short covering is not ruled out, the crucial support on the downside for the Nifty is 5930-5897 and resistance at 6111."
Wall Street ended higher on hopes that Ireland might enter an agreement with European Union for a possible bail out. However, the Standard & Poor's 500 index were unable to break out of 1,200 resistance level. The Dow Jones industrial average gained 1.6%, to 11,181.23, the Standard & Poor's 500 rose 1.5%,to 1,196.69 and the Nasdaq Composite added 1.6%, to 2,514.40. General Motors made a stellar debut, surged 8% on listing and closed at $34.19, up 3.6%.
Markets in Asia were subdued on account of an expected rate hike in Shanghai to rein in Inflation. Hong Kong's Heng Seng index fell 1% dragged by Chinese banks and local property stocks. China's Shanghai Composite slipped into the red, down 1%. Japan's Nikkei 225 was up 0.5%, South Korea's Seoul composite was up 0.3%, and Taiwan Weighted rose 0.6%. Strait Times was trading in the red, down 0.6%.