Markets are expected to open higher on back of strong global, however there may be volatility on account of derivatives expiry. The Nifty futures on the Singapore Exchange gained 33 points, at 5,714.
While markets may open on a positive note, technicals indicate a bearish near term trend. Puneet Kinra, Senior Technical Analyst (Equity Research) from Bonanza Portfolio said,"Nifty showed selling pressure from 5800 levels and made bearish engulfing candlestick pattern, which shows bears are again having control at the moment. As long as Nifty trades above 5600 levels, volatility in 5600-5850 levels may be seen. On maintaining below 5600 or above 5750 levels, decisive price action may also be seen." Kinra said 5680 was the trend deciding level for Nifty.
Asian markets pared losses and were trading modestly higher in the morning trade. Chinese government unvieled some new measures to control prices. China's Shanghai Composite rebounded, up 1% at 2,815 led by gains in auto and resource shares.
Hong Kong's Heng Seng was trading flat at 23,899 as Chinese developers tumbled, however telecom and resource shares lend support. Japan's Nikkei 225 advanced 0.3% buoyed by strong earnings expectations and a firm Yen against the Euro.
Taiwan Weighted was up 0.6%, Straits Times, Singapore's benchmark index dropped 0.1% and Seoul Composite was up 0.2%.