Pre-market: Nifty seen opening higher; automakers eyed

NEW DELHI: The 50-share Nifty index is expected to open higher on Monday tracking positive Asian markets, while investors will keep a close eye on auto stocks after they unveiled their monthly sales figures over the weekend.

At 07:30 a.m., Nifty India stock futures in Singapore were up 20 point at 5,930.50, indicating a positive opening on the domestic market.

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Maruti Suzuki sold 103,200 vehicles in the month under review, up from 91,772 a year earlier, a rise of 12 per cent. While utility vehicle major M&M reported an 18 per cent jump in the consolidated sales to 48,143 units for November as against 40,722 units sold in the same month last fiscal.

Tata Motors Ltd, showed a 13.43 per cent decline in its total vehicle sales to 66,500 units in November as against 76,816 units sold in the same month last year.

Indian markets will also watch out for HSBC India Manufacturing PMI, which gauges the business activity of India's factories, for November 2012 on Monday.

Indian markets registered their biggest weekly gains in absolute term, 833.33 points for the Sensex and 253.25 points on the Nifty, in the current calender year till now due to strong buying activity on a slew of positive developments. This week rally was supported by the highest turnover as well as by the FII buying.

Technically speaking, in the coming sessions, market is likely to see a profit booking in the range of 5900-5950 levels since Nifty has given a rally of 230 points in last three trading sessions.

“The Nifty is trading in an upward rising channel indicating a support of 5600 levels. Weekly chart indicates that Nifty is trading in the higher top- higher bottom pattern a bullish island with support around 5600 levels,” LKP Said in a report.

“After a stiff rally of 230 points we may see a consolidation in the range of 5800-5700 levels. Momentum indicators are in buy mode. Investor may book the profit on every rise towards 5900-5950 level and wait for an opportunity to buy on dips,” added the report.

On Friday, US stocks as concern logjam in US budget talks. The coming week, Wall St will shift focus on slew of US economic data which may act as a fuel for a December rally.

“The U.S. fiscal crisis remains the center of focus in oil markets due to its potential impact on demand from the world's biggest consumer,” Reuters reported.

The Dow Jones industrial average was up 3.76 points, or 0.03 per cent, at 13,025.58. The Standard & Poor's 500 Index was up 0.23 points, or 0.02 per cent, at 1,416.18. The Nasdaq Composite Index was down 1.79 points, or 0.06 per cent, at 3,010.24. Asian shares after data from manufacturing data from China boosted investor sentiment, but stagnant US budget talks capped further gains.

China's official manufacturing purchasing managers' index (PMI) rose to a 7-month high of 50.6 in November, which revealed factory activity reviving to a 13-month high.

"Investors will be eyeing more Asian data on Monday, manufacturing surveys from China, Korea and India, for further signs of economic recovery," said a Reuters report.

Oil steadied, with US crude futures up 0.1 per cent to $89.03 a barrel.

Japan's Nikkei 225 index was trading 0.50 per cent higher at 9459.17 and Hong Kong's Hang Seng index was trading higher at 22,100.12, up 0.32 per cent.

South Korea's Kospi index was trading 0.3 per cent higher at 1,939.45. China's Shanghai index was trading 0.34 per cent higher at 1,987.12.

Global cues to watch out:

India 3rd Dec – Nov Markit Manufacturing PMI

China 3rd Dec – Non Manufacturing PMI for Nov. Prior 55.5 3rd Dec – HSBC Manufacturing PMI for Nov. Survey of 50.4 vs prior 49.5

Nifty F&O Cues:

Nifty futures added 1.6 lakh shares in Open Interest (OI) Nifty 6100 call added 9.1 lakh shares in OI Nifty 6200 call added 5.4 lakh shares in OI Nifty 6300 call added 8.3 lakh shares in OI

Nifty 5400 put added 8.98 lakh shares in OI Nifty 5800 put added 10.8 lakh shares in OI Nifty 5900 put added 12.1 lakh shares in OI