The Indian markets may see a red opening on the back of negative global cues as the Federal Reserve cut in its forecasts for U.S. economic growth this year and next couple with no cues of further plans for stimulus played spoilsport. The opening indicator, SGX Nifty is down 16 points at 5,266.
Overnight, in the US markets, stocks dropped as investors hoping for positive comments from Fed Chairman Ben Bernanke were disappointed, and that gave them a reason to sell after a four-day rally that had lifted stocks from three-month lows.The Dow Jones industrial average slid 0.6%, to end at 12,109. The Standard & Poor's 500 Index fell 0.6% to 1,287. The Nasdaq Composite Index lost 0.6% to close at 2,669.
In the light of these developments, the Asian markets too started in the negative. The top losers among the Indian indices are Hang Seng down nearly 0.7% followed by Seoul Composite, Taiwan Weighted losing 0.5% each.
Ashish Chaturmohta,Vice President - Derivatives and Technical Analyst, IIFL states that technically, bears may capitalize the market if 5180 levels are breached on closing basis whereas on the upside bulls may only be confident to contribute in the market if Nifty holds above 5500 psychological levels on closing basis finding volume support. Immediate resistance for Nifty caps at 5320 levels above which 5380-5400 levels can be tested.
The stocks to watch out for the day are the pharma scrips namely Aurobindo, Dr Reddy's, Glenmark, Lupin, Torrent and Wockhardt which are set to enter US generic drug market. Fertiliser stocks may see some action today as the government is likely to remove the restriction on fertiliser firms such that they can hike the maximum retail price of Di-ammonium phosphate only by up to Rs 600 a tonne.