Markets may open marginally higher following modest gains across Asia and long positions formed in Nifty futures. The SGX Nifty was up 6 points, at 5,510.
Derivative Analyst Shshank Mehta said that long positions were formed in the Nifty futures; Nifty futures were trading at 19 points premium to spot yesterday.
Markets will take cues from the May inflation data which will be out at noon today. Reuter’s poll expects Whole Sale Price Index at around 8.6% which may prompt the Reserve Bank of India to continue with its rate hike of around 25 bps later this week.
Ashish Chaturmohta, Vice President - Derivatives and Technical Analyst from IIFL wealth said, if Nifty sustains above 5440 levels with volume support we may see some pullback, whereas on the downside, a close below 5400 levels would be crucial for the market.
Markets across Asia also posted modest gains in the morning session. China’s Whole Sale Price Index was reported in line with expectations around 5.5% for May compared to 5.3% in April. Shanghai Composite advanced 0.9% and Hong Kong’s Hang Seng gained 0.3%. Japan’s Nikkei Stock Average was up 0.2%.
