The markets may see a green opening owing to the positive global cues. The SGX Nifty is down 17 points at 5,412.
Overnight in the US markets, the S&P 500 index rose, snapping a seven-day losing streak, but worries about the economy kept investors jittery and trading volatile. Trading was the busiest since mid-March, with more than 10 billion shares changing hands as the S&P dipped to a new low for 2011 before storming back to finish higher.
The Dow Jones industrial average was up 0.2%, at 11,896. The Standard & Poor's 500 Index was up 0.5%, at 1,260. The Nasdaq Composite Index was up 0.9%, at 2,693.
In the Asian markets, the indices are largely in the green. The Nikkei is the top gainer, up 0.9% as Japan intervened in currency markets to curb the yen's gains that officials fear threatened to derail the economy's recovery from a slump triggered by a massive earthquake in March.
The other notable gainers were Shanghai Composite, Jakarta Composite and KLSE Composite adding 0.4%. The Hang Seng has gained 0.1%.
Back home, after yesterday’s sell off in the market, there might be some relief today. However the picture is not that great. According to the Pinc Technical report, yesterday's decline confirms that the weakness that has started from 5700 still holds. It also broke the support of 5440. A sustainable recovery is now only possible if the Nifty manages to conquer the zone of 5600-5650 on the upside.
Also, India has received below normal rainfall this monsoon and it is likely to be worse for the rest of the season, according to the latest forecast by the India Meteorological Department (IMD). The eastern part of the country was worst hit with erratic rains so far. This may lead to a drop in the agricultural output fuelling spike in food inflation.
FIIs continue to remain net sellers.Yesterday they sold off Rs 870 crores.
For today, Angel Broking in its morning report suggests that the trend deciding level is 5,402 levels. If Nifty trades above this level during the first half-an-hour of trade then we may witness a further rally up to 5,425 – 5,446 levels. However, if Nifty trades below 5,402 levels for the first half-an-hour of trade then it may correct up to 5,382 – 5,358 levels.
