Pre-market: Markets likely to open higher

Indian stocks are likely to open marginally higher today tracking global cues and the government’s clarification over the transfer residency certificates over the weekend.

Benchmark US share indices firmed up on Friday on the back of better-than-expected US manufacturing data and consumer sentiment indicating signs of an economic recovery.

The Dow Jones Industrial Average ended up 35 points at 14,090. S&P 500 ended gained 4 points at 1,518 and Nasdaq Composite ended up 10 points at 3,170.

Stocks in Asia were trading firm today amid encouraging US manufacturing data for February. The Nikkei was up 1.1% and South Korea’s KOSPI was also up 0.1%.

At 700 am IST the SGX Nifty was down 6 points at 5,720.

According to technical experts, the bias is likely to favour the bears as long as the Nifty sustains below 5,840-odd levels. On the downside, the index could slide to 5,550-odd levels—-the 200-weekly moving average.

To sum up, in case the index holds above 5,670, we could see a pull-back in the markets, which could take the Nifty to 5,850-odd levels. In the interim, the index could face resistance at about 5,785. Overall, it seems set for 5,550-odd levels in the short to medium term.

Aviation companies are likely to be in action after Air Asia and Tata Group which have proposed to set up a domestic airline along with Arun Bhatia of Telestra Tradeplace, have sought approval for renting and leasing of aircraft, besides carrying of air freight.

Foreign Investment Promotion Board is likely to take up Air Asia’s application for the joint venture on March 6.

HDFC Bank will be in action on reports that it has successfully raised 500 million dollars via five-year overseas bond sale at a coupon rate of 3%.

Jindal Steel and Power will witness action on reports that the company has increased prices of its products by up to Rs 1,000 per tonne for March.