Pre-market: Markets likely to open on a cautious note

The Indian markets are likely to open on a cautious note following after witnessing a steep fall last week. Owing to all-round selling pressure triggered by negative industrial growth in October and a persistent sell-off by foreign funds, the Sensex slipped 722.11 points during the past week.

A rally in US stocks fizzled, leaving major indexes with modest gains on Friday, as Wall Street was torn between hope that US economic data signals better times ahead and fear Europe's debt crisis will engulf world economies. For the week, the Dow fell 2.7 per cent and the S&P lost 2.9 per cent.
 
Asian stocks fell on Monday on fears possible credit ratings downgrades of several European countries could derail progress towards resolving the euro zone's debt crisis, while the euro steadied after its worst weekly performance in three months.

MSCI's broadest index of Asia Pacific shares outside Japan fell 0.7 per cent on Monday, while Tokyo's Nikkei stock average opened down 0.5 per cent.

Back home, the Nifty is likely to seek support around 4,580 – 4,535, and face resistance around 4,725 – 4,770, technical analysts say. At 720 am Indian Standard Time, the SGX Nifty was trading at 4586, down 40 points.

Among individual stocks, D-L-F is expected to react to reports that the company plans to hire an investment banker and an international property consultant by mid-January to sell off its Bombay Mills parcel in the country’s western metropolis.

The Sahara group will give a loan of more than 250 crore to Kingfisher Airlines, to help the carrier continue operations, reports suggest.

The stock is likely to react to this development today.

Oil marketing companies could also be in limelight today on reports that they have decided not to change petrol prices this fortnight in view of correction in rupee-dollar value.