The markets may see a strong opening on the back of positive cues from across the global markets. The SGX Nifty is up 47 points at 5,175.
In the US markets overnight, US stocks shot up 4% as bargain-hungry investors overcame the recent wave of fear that drove selling over the last two weeks. Yesterday's rally was the second bounce in a yo-yo week. After a sell-off that pushed the S&P 500 down as much as 17% since July 22, the market was showing some signs of regaining its footing.
The Dow Jones industrial average surged 4%, to 11,143. The Standard & Poor's 500 Index shot up 4.6%, to 1,173. The Nasdaq Composite Index jumped 4.7%, at 2,493.
As a result, the Asian stocks edged higher. Also, investors hunted for value after an intense week of volatility, though the festering European financial crisis may mean that havens like gold and the Swiss franc may still draw buyers.
Hang Seng, Jakarta Composite, Straits Times and Seoul Composite up 1% each are the top gainers. Shanghai Composite added 0.6% and Japan's Nikkei share average rose 0.2%.
Back home, the FIIs were net sellers of Rs 60 cr, the previous day. Today, the IIP data is expected which may cause some volatility in the markets. Reuters poll suggests that India's annual industrial output growth probably slipped further in June to 5.5% from a nine-month low of 5.6% in May, indicating taut monetary policy and soaring inflation were hindering growth momentum. The forecasts, from 23 analysts, ranged from 3.8% to 7.7%.
In its morning report, Angel Broking opines that the trend deciding level for the day is 5,148 levels. If Nifty trades above this level during the first half-an-hour of trade then there may be a rally up to 5,175–5,212 levels. However, if Nifty trades below 5,148 levels for the first half-an-hour of trade then it may correct up to 5,111–5,084 levels.
The results to atch out for the day are Coal India, DB Realty, HDIL, Hindalco, HPCL, Jaiprakash Associates, Punj Lloyd, SpiceJet, Tata Steel, Unitech and Tech Mahindra.
Tata Motors may see some action today as CLSA downgraded the company to under-perform from outperform, with the target price reduced to Rs 790 from Rs 1,150
