Indian markets are expected to trade on negative note on the back of reproachful cues from global markets.

Market Outlook: Indian markets are expected to trade on negative note on the back of reproachful cues from global markets. US markets closed in the red but off intra-day lows as in investors assessed the Japanese quake's damage to the world economy. The Dow closed below the key 12,000 mark. and Asia trading weak; Nikkei slips 6.4%, Hang Seng down. Crude witnessed steady trade as investors expected demand from quake-ravaged Japan to rise. Japan may hike crude demand to cover for shut refineries. Nymex crude traded around the USD 101 per barrel mark, while Brent traded around the USD 113 per barrel mark. Overall outlook for the markets today is that of cautious optimism as the bulls must hold the Nifty above the 5420 levels sustain ably to manage an upmove in the coming session.

Global events to watch

Þ Housing Market Index

Þ Import and Export Prices

Þ Empire State Mfg Survey

Global indices Update @ 8:

Dow Jones : 11993 (- 51.24)

NASDAQ : 2700 (- 14.64)

Nikkei 225 : 8999 (- 620.7)

Hang seng : 22742 (- 603.2)

SGX CNX Nifty : 5448 (- 107.5)

INR / 1 USD : 45.15

Technical outlook:

Sensex recovered last two days losses by gaining 265 points on first day of week. After opening slightly lower than previous close at 18167, Sensex rebounded into positive territory and rallied to days high at 18463 levels. Oil & Gas, Metal, Bank, Information Technology and Power indices were the major gainers with 1-2% upside

The formation of “Engulfing” bullish candle on daily chart against Friday’s body gap down pattern indicates strength in the market. In case, if Sensex succeeds to hold above 18400 and sustain above 18560 levels then only the current rally will be continue upto 18700 or more levels in the next trade. Otherwise, Sensex will see at least intraday correction below 18300 mark.

In intraday, 18560-18660 in Sensex, 5550-5580 in Nifty will act as important resistance for the day. Failure to trade above these levels will create the possibility of at least intraday correction.

Support levels

Sensex ( last close 18439) 1) 18300 2) 18180

Nifty ( 5531) 1) 5490 2) 5440

Nifty Fut. ( 5555) 1) 5515 2) 5465

Bank Nifty ( 10970) 1) 10840 2)10750

Resistance levels

Sensex 1) 18560 2) 18700

Nifty 1) 5570 2) 5620

Nifty ( Fut.) 1) 5590 2) 5640

Bank Nifty 1) 11090 2) 11260

Stocks in Action for the day: Cairn India, Fortis Healthcare, Educomp Solutions, Bharti Airtel

SEBI issues final observations on Cairn-Vedanta deal: The Securities and Exchange Board of India (SEBI), said on Monday it had issued final observations on Vedanta's open offer for Cairn India. Cairn Energy agreed six months ago to sell up to 51% in its Indian unit to Vedanta in a deal valued at up to USD 9.6 billion, which had been delayed as the government looked into issues of royalty payments.

Quake sell off wipes $287 bn off Tokyo stock market: A massive selloff on the Tokyo Stock Exchange wiped out some 23.5 trillion yen (USD 287 billion) from the market's value on Monday with investors dumping stocks as the country recoiled from a devastating earthquake and struggled to avert nuclear disaster. The selloff triggered record volumes and slashed the market's value to roughly 289 trillion yen. he Nikkei average tumbled 6.2%, its biggest decline in a single day since October 2008, and more than 4.88 billion shares changed hands on the exchange's first section, the highest number since World War 2.

Japan's carmakers supend domestic operations: Japan's four biggest carmakers have said they are suspending production at their domestic plants through to at least Wednesday to cope with the after-effects of Friday's earthquake and tsunami. Honda, Japan's second-largest carmaker, said on Monday that it was halting domestic production for a week and that damage to its suppliers' plants might disrupt its UK production. Toyota, Nissan, and Mitsubishi Motors also extended shutdowns of their plants in order to assess and deal with damage from the quake.

Q4 advance tax numbers a mixed bag: Sources

Heavyweight Hindalco is likely to pay Rs 160 crore versus Rs 118.50 crore.

Century Textiles is likely to pay Rs 42 crore versus Rs 86 crore.

Novartis is likely to pay Rs 13 crore versus Rs 12 crore.

Voltas is likely to pay Rs 30 crore versus Rs 32 crore.

Siemens is likely to pay Rs 98 crore versus Rs 90 crore.

Sonata Software is likely to pay Rs 1.5 crore versus Rs 2.5 crore.

Greaves Cotton is likely to pay Rs 14 crore versus Rs 14.80 crore.

Essel Propack is likely to pay Rs 4 crore versus Rs 1.5 crore.

Navneet Publication is likely to pay Rs 9.5 crore versus Rs 6.5 crore.

Sun TV Network has hiked advertisement rates of Malayalam and Kannada Channels from April 01, 2011.

Educomp Solutions has received Rs 67.93 crores order from Maharashtra government.

Vishal Retail has completed the slump sale of its wholesale and retail undertaking for Rs 70 crore.

Fortis Healthcare and TotopotentRX Cell Therapy announced a collaboration to set up centers of excellence offering cellular therapies and stem cell clinical trials across Fortis hospitals.

JIK Industries has launched European style crystal jewellery for high end and luxury customers. The designs will be inspired from European art and fashion.

Diamond Power Infrastructure has informed bagged order for 400 KV HV DC line conductors.

Nippon Life Insurance signed a definitive agreement to acquire 26 per cent stake in Reliance Life Insurance. Nippon Life Insurance will invest aggregate Rs 3062 crores to acquire 26 per cent strategic stake in Reliance Life Insurance.

Hov Services has approved merger of its indirect subsidiary HOV Services LLC with Texas-based BPO services company SOURCECORP Inc. As a result of this merger, the company and SOURCECORP will each control 50 per cent of SCH Services Inc. The transaction is expected to be completed in next 45-60 days.

Tata Global Beverages has announced damage to raw material stocks and warehouse building due to fire at its instant tea unit in Munnar. The financial loss is not expected to be material and company has adequate insurance cover.

Lupin is planning to launch ten products in the Japanese market through its arm Kyowa Pharmaceutical in the next fiscal, say reports.

Hitting out at the delays in executing the stake sale, Bharti Airtel has withdrawn its bid to buy out the government’s 30% stake in its subsidiary Bharti Hexacom, which offers mobile services in six north-eastern states (excluding Assam) and Rajasthan.