Markets may open marginally higher tracking firm Asian cues as commodites bounced back, but gains may be capped as investors turn jittery over earnings growth after SBI reported 99% slump in y-o-y net profit yesterday.
The Nifty futures on the Singapore Exchange were up 14 points, at 5469.
Hike in diesel prices in the near future may further spike inflation and prompt RBI to raise rates further. Yesterday markets broke bear flag pattern and touched a low of 5420 on high volumes. A bear flag pattern on technical charts resembles an inverted flag on a pole, the decline has strong volume and consistent downward price movement. Edelweiss in the morning note said that Index may now drop to 5370-5350 support. Edelweiss added, “the Nifty might attempt to re-test the ‘bear flag’ pattern at 5480 which should be used to add short positions. On the upside, 5550 will act as a reversal point of the negative outlook.”
Across Asia markets were trading in the green on bargain buying in energy shares. The Hang Seng Index rose 0.3% to 22,967, property developers gained modestly paring some of their recent losses. Japanese stocks rose led by gains in banking and oil related shares. The benchmark Nikkei Stock Average added 0.7% to 9,631.24. China's Shanghai Composite index was also up 0.6%.
Among individual stocks Bajaj Auto will be closely watched ahead of the fourth quarter results.
