Pre-market: Markets likely to trade with downward bias

The stock markets are likely to continue with a downward bias on Monday morning in spite of the half percent gains in key indices last week. Asian markets are down on Monday morning and even Dow Jones futures are trading one percent lower.

Besides global cues, most of the market action will be determined by expectations of the March quarter results this week. Infosys will announce its result on Friday April 13th. Besides, economists and analysts will also try to read the minds of central bankers, who will announce the annual monetary policy on April 17.

The SGX Nifty was trading 46 points lower at 5275 points at 7:40 am.

From the technical point of view, the weekly charts indicate that the 17,300-level is crucial. As long as the index stays above 17,300, there is a possibility of the Sensex attempting pull-back rallies. If this level is broken, the next major supports are at 16,900 and 16,700.

On the upside, the Sensex needs to sustain above 17,400 and cross 17,660 to reach 17,850 and 18,100, which are major resistance levels. The Nifty is likely to seek support around 5,285-5,260, and face resistance around 5,360-5,385 for the week.

Technology and banking stocks will be in the limelight as analysts will build in their forecasts into stock prices. Reliance MediaWorks will be in the news as Mexican firm Cinepolis may buy a stake in its exhibition arm Big Cinemas. Marico may attract interest on plans of a Rs 500 crore preferential issue. GMR Infrastructure too is raising Rs 650 crore to repay part of its debt.