Markets see a quiet opening

Markets have opened in the green this morning. Sensex opened at 16,203 - up 35 points. The index, however, dropped into the red after that and is now down 64 points at 16,103. Nifty is down 25 points at 4,827.

"The trend deciding level for the day is 16,081/4,826 levels. If Nifty trades above this level during the first half-an-hour of trade then we may witness a further rally up to 16,273 – 16,379 / 4,885 – 4,918 levels. However, if Nifty trades below 16,081/4,826 levels for the first half-an-hour of trade then it may correct up to 15,975 – 15,782 / 4,792 – 4,733 levels," said Angel Broking in a research note.

Overnight, US stocks rebounded from seven days of losses on Monday as investors used the latest effort from European leaders to resolve the region's debt crisis as an opportunity to cover short positions.

The Dow Jones industrial average was up 291.23 points, or 2.59 per cent, at 11,523.01. The Standard & Poor's 500 Index was up 33.88 points, or 2.92 per cent, at 1,192.55. In Asia, markets rose on hopes of more drastic steps to deal with the euro zone debt crisis and a robust start to the U.S. holiday shopping season boosted global stocks.  Japan's benchmark Nikkei average opened up 1.01 per cent at 8,371.01 on Tuesday, while Seoul Composite and Shanghai Composite advanced nearly 1% each.

On Monday, markets extended gains in late noon trades on sustained buying in metal and realty shares. The Sensex, ended with a gain of 472 points, or 3%, at 16,167. Nifty ended up 141 points at 4,851.

"Rally on index is purely a technical bounce on oversold charts; whereas resistance is expected at around 5010 levels," said technical analyst, Ravi Natahni.

As per provisional figures, foreign institutional investors (FIIs) sold shares worth a net Rs 302.59 crore on 28th November 2011. Domestic institutional investors bought shares worth Rs 307.3 crore on that day.

Indian markets would be closely watching out for the quarterly GDP data and external trade data due on Wednesday and Thursday, respectively.

Most of the sectoral indices were trading in the red. BSE Oil & gas indices dropped 1% to 8,090 as heavyweight Reliance slipped in opening deals. IT, metal and bankex were weak as well.

RIL has slipped 1.5% to Rs 772 - the biggest loser among Sensex stocks - after slapping Oil Ministry with an arbitration notice saying the move to disallow a part of its investment in India's largest gas field is illegal and violation of signed contract.

Metal shares, Hindalco, Sterlite and Jindal Steel were down around 1% each.

PSU stocks like Coal India, ONGC and SAIL have dropped on reports that the Department of Disinvestment has circulated a cabinet note to seek the opinion of the concerned ministries. ONGC slipped 1.3% to Rs 258. Coal India is flat at Rs 321.

Among other losers were Hero MotoCorp, Infosys, Larsen & Toubro, DLF and ICICI Bank. Meanwhile, Cipla gained 1.3% at Rs 328. IIFL has recommended a BUY on the pharma company with a target price of Rs 390, up from the previous Rs 351.

Mahindra & Mahindra, Tata Steel and HDFC bank have gained marginally in morning trades.