Pre-market: Cautious start likely; Bajaj Auto, Voltas to announce March quarter results

Markets are likely to open on a flat note following mixed cues from Asia. SGX Nifty was trading 18 points higher at 8,440 levels at 7:50am.

On Wednesday, benchmark indices ended higher in a volatile session, supported by strong buying among software and financial shares. The Sensex ended higher by 191.68 points at 27,837.21 and the Nifty closed at 8,423.25, up 57.60 points.

“On Wednesday, the Nifty retested its crucial hurdle around 8440 but failed to cross the same, despite several intraday attempts. It strengthened our belief that profit taking is likely in index, followed by consolidation in the coming days. Hence, traders are advised to uphold cautious approach in long trades and avoid over leveraging in carry over trades,” said Jayant Manglik, President-retail distribution, Religare Securities in a post market note.

"Also, we reiterate our preference to select counters from metal, PSU banks and realty pack for fresh short positions,” he added.

Nifty, according to technical analysts, has snapped the losses it made recently by more than 50% Fibonacci retracement level in last two weeks.

"It now has to continue to hold above 8,420 to witness the up move towards 8,480 and 8,500 levels. On the downside, if it fails to sustain 8,420 levels, then the index may witness profit taking and it may again get stuck in the wider range of 8180-8380 levels," said technical analysts at Anand Rathi in a report.

RESULTS CALENDAR

Ahluwalia Contracts (India), Bajaj Auto, Britannia Industries, CESC, Deepak Fertilisers & Petrochemicals Corporation, Essar Shipping, Indiabulls Real Estate, Kalindee Rail Nirman, MMTC, Shipping Corporation of India, Shree Renuka Sugars, Voltas and Zee Entertainment Enterprises are some of the companie that are likely to announce their March quarter results today.

GLOBAL MARKETS

Asian stocks pared gains as a preliminary Chinese factory gauge missed estimates. US equity-index futures retreated and the dollar was weaker against most peers after a three-day rally.

The MSCI Asia Pacific Index added 0.1% by 11:04 a.m. in Tokyo, trimming a rise of as much as 0.4% as the Hang Seng China Enterprises Index dropped 0.7%. Standard & Poor’s 500 Index futures slipped 0.3%. The dollar weakened 0.3% versus the euro and 0.2% against Japan’s yen.