Pre-market: Cautious opening on cards

Kingfisher, Reliance Communications on the buzzer

After trading lacklustre all this week, the markets are likely to trade on sideways yet again tracking global cues.

In a surprise move, China cut its benchmark lending rates by 31 basis points to 6 per cent. On the other hand, the quarter-point cut in the ECB's main refinancing rate to 0.75 per cent, was in-line with market expectations. Both the developments came in after the Indian equity markets had closed for the day.

US stocks slid on Thursday as new stimulus measures by major central banks failed to spur confidence. The Dow Jones industrial average closed down 0.4 per cent and the Standard & Poor's 500 Index lost 0.5 per cent.

Asian shares began trading on a cautious note on Friday. MSCI's broadest index of Asia-Pacific shares outside Japan was nearly flat early, and Japan's Nikkei average opened down 0.3 per cent.

Back home, the Nifty is likely to face resistance around 5,345 – 5,355 and can seek support around 5,310 – 5,300, analysts say.
  
At 810 am Indian Standard Time, the SG Nifty was trading flat at 5,327 levels.

Among individual stocks, Kingfisher Airlines could drift lower in trade on reports that the meeting between the management and the lenders failed to make any headway. The lenders refused to commit on fresh fund infusion.

RCom could also be in the limelight today on reports that its Singapore-based subsidiary, Flag Telecom, has filed a preliminary prospectus for an initial public offering that could raise about $1 billion.

India Cements could also be back in action as its promoters have acquired 76-lakh shares from the open market, taking their holding to 28.24 per cent.