Pre-market: Markets likely to remain cautious

The Indian markets are expected to open on a cautious note, a day ahead of the start of the winter session of Parliament.

Last week, the markets logged heavy losses on the back of ongoing euro crisis and domestic growth issues. The markets saw red on all five trading days of the week, with the broader markets facing brunt of the selling. The BSE benchmark index finally ended with a loss of 4.8% or 821 points at 16,372. The Nifty fell below the psychological 5,000-mark, to end the week with a loss of 263 points at 4,906.

According to technical analysts, the Sensex has given a strong sell signal for this month as per the monthly fibonacci charts. In case of a pull-back or a relief rally, the Sensex is likely to face strong resistance around 16,900. On the downside, it could re-test its October low of 15,750-odd levels. At 720 am Indian Standard Time, the SGX Nifty was trading at 4866, down 57 points.

Among individual stocks, Kingfisher Airlines will be back in focus on reports that government has decided to ask the LIC to consider picking up 10% stake in the airline.

Phoenix Mills is reported to be refinancing loans and selling office properties in its upcoming mixed-use projects. This can bring the stock in limelight today.

The Finance Ministry has sanctioned an additional 15,000 crore to partially compensate state-owned oil firms for losses they incur on selling fuel below cost. This could bring HPCL, BPCL and IOC back in focus today.

Pricol could also see some action on reports that private equity firm Phi Capital Solutions LLP is set to pick up 4.76% in the company.