Markets may open lower tracking lacklustre cues in the global markets as commodity prices firmed up renewing concerns of inflation and further rate hike. The Nifty futures on the Singapore Exchange were trading at 5548, down 7 points.
Brent Crude rebounded to $114/bbl and silver also climbed 5% leading the recovery in the precious metals as Dollar Index fell to 74.6 from 74.7 after breaking out above the 75 level.
US Markets bounced back as energy and natural resource companies surged led by rebound in commodities. The Dow Jones Industrial Average gained 0.4%, the Standard & Poor’s 500 Index added 0.5% and the Nasdaq Composite rose 0.6%.
Asian markets were trading flat in the morning session. Japan's Nikkei Stock Average was down 0.2% driven by potential power shortages. Hang Seng surged 0.8% as crude firmed up boosting energy shares. Shanghai Composite was also up 0.3%. South Korea's Kospi Composite fell 0.4%, Taiwan's weighted index was up 0.1% and Singapore's Strait Times gained 0.3%.
Back in India investors are waiting on sidelines and watching the movement in commodity prices very closely. On the technical markets Nifty contunyes to form higher tops and bottom indicating that the index is in a bear trend. Edelweiss in the morning note said "we continue to maintain an upward bias in the absolute near-term and look for a test of 5630-5650 resistance clusters. On the downside the index is pivoted at 5500 on a daily closing basis.
According to the data available from Bombay Stock Exchange, FIIs were net buyers of Rs 196 crore after bein net sellers for past 10 sessions. While DIIs were net sellers of Rs 126 crore.
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