Markets may edge higher in opening trades tracking positive cues from Asia, however volatility may be seen ahead of the fourth quarter GDP data. The Nifty futures on the Singapore Exchange advanced 20 points, at 5,487.
According to the Reuters poll March quarter growth is seen around 8.2% y-o-y unchanged from the previous quarter. Markets are expected to remain weak going forward in absence of any fresh cues. Technical Analyst Devangshu Datta said, “The short term trend has consolidated slightly, but the intermediate and long term trend appears to be down.”Datta said the Nifty is holding above support of 5,400 and is testing resistance above 5,500.
Across Asia markets were trading higher on Tuesday Morning. Japan’s Nikkei Stock Average was up 1.2% after industrial production bounced back in April, up 1% after the output fell 15.3% in March. Hong Ko’g's Hang Seng extended gains spurred by financial, commodity and power utility shares. China’s Shanghai Composite was also up 0.2%.
Among individual stocks Reliance Communication will be closely watched after annual net profit slumped 71% to four year low, at Rs 1,346 crore on account of larger than expcted depreciation, higher tax outgo and interest costs of Rs 2,200 crore.