Markets are likely to see a soft opening following overseas bourses. Overnight, US stocks edged lower on Tuesday after A stark warning from the IMF about the global growth outlook and the prospects for Spain and Greece sent European stocks and the single currency lower. Dow Jones crashed 110 points and Nasdaq shed 47 points, respectively.
In Asia, Nikkei slipped, mirroring Wall Street losses. The index was down 150 points at 8619. At 700 hrs IST the SGX Nifty was down 22 points at 5,707.
According to technical analysts, the Nifty seems to be precariously placed, with near support around 5,665, below which the index can drop to 5,620-odd levels.
On the upside, the index can spurt to 5,750. Key momentum oscillators like the MACD and Stochastic Slow have turned negative on the daily charts, hence one need to exercise caution at the current juncture.
On Wednesday, the NSE index is likely to seek support around 5,685-5,670, while face resistance around 5,725-5,735.
STOCKS TO WATCH
From individual stocks, Deccan Chronicle Holdings, the owner of the Hyderabad franchisee of the Indian Premier League Deccan Chargers, has asked for a three-day extension to furnish the Rs 100 crore bank guarantee to the Indian cricket board, which it was supposed to give by Tuesday. Shares of Deccan Chronicle would be watched today.
Hinduja Global Solutions, the BPO business of diversified business conglomerate Hinduja Group, is planning to expand footprint in near-shore locations such as Colombia, Mexico and Brazil to keep pace with the clients' demands. This may bring the stock into focus.
State Bank of India may come into the limelight after it said it is witnessing early signs of revival in credit growth as mid-corporates have started seeking fresh funds.
Watch out for Apollo Hospitals as Pune-based Indus Health Plus has tied up with Apollo Hospital, Ahmedabad, to facilitate high-end preventive health check-ups.
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