Market Outlook: Indian markets may open higher tracking global cues, but expect profit booking action in the later noon session.
RBI quarterly review meet and FOMC meet in US are major events that may guide markets. Massive short build up in Nifty and frontline stock futures along with FIIs persistently selling in cash and index futures indicates one should be cautious in the market and should wait for a technical breakout above 2750 levels to unfold the optimism.
However, on the lower side, Nifty is likely to encounter strong support around 2600-2500 levels where we have seen good amount of put writing in current and next month series. Although upside seems to be capped on the back of call writing at 2700-2800 levels, decisive close above 2750 for couple of trading sessions might call for short covering which could take Nifty to 2800-2850 levels.
Result oriented stocks to be in actions while banks will be eyed ahead of Credit policy today.
On the global front: US markets ended in the green, amid expectations of stimulus. The 68 billion dollar deal between Pfizer and Wyeth helped overshadow gloomy earnings outlook from caterpillar.
Indian ADRs: Satyam up 11%, Infosys up 2%, HDFC Bank, Tata Motors up 1%, ICICI Bank down 1%
Nifty Outlook: Pivot level: 2701
R1: 2742, R2: 2805,R3: 2846
S1: 2638, S2: 2598, S3: 2534
RBI quarterly review meet and FOMC meet in US are major events that may guide markets. Massive short build up in Nifty and frontline stock futures along with FIIs persistently selling in cash and index futures indicates one should be cautious in the market and should wait for a technical breakout above 2750 levels to unfold the optimism.
However, on the lower side, Nifty is likely to encounter strong support around 2600-2500 levels where we have seen good amount of put writing in current and next month series. Although upside seems to be capped on the back of call writing at 2700-2800 levels, decisive close above 2750 for couple of trading sessions might call for short covering which could take Nifty to 2800-2850 levels.
Result oriented stocks to be in actions while banks will be eyed ahead of Credit policy today.
On the global front: US markets ended in the green, amid expectations of stimulus. The 68 billion dollar deal between Pfizer and Wyeth helped overshadow gloomy earnings outlook from caterpillar.
Indian ADRs: Satyam up 11%, Infosys up 2%, HDFC Bank, Tata Motors up 1%, ICICI Bank down 1%
Nifty Outlook: Pivot level: 2701
R1: 2742, R2: 2805,R3: 2846
S1: 2638, S2: 2598, S3: 2534
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