Pre-market: Nifty seen opening lower; Industrial production data eyed

NEW DELHI: The 50-share Nifty index is expected to open lower on Monday tracking weak Asian markets, while investors will keep a close eye on Industrial Production data for the month of September.

The markets may remain volatile as investors have to grapple with Consumer Price Inflation (CPI) and Index of Industrial production data on Monday (November 12, 2012). The wholesale price index (WPI) for October 2012 is expected to be released on Wednesday, (November 14, 2012).

India's industrial production likely grew at a steady but slow annual pace in September, as policy measures taken over August-September are likely to reflect in September IIP data, a ET NOW Poll showed.

The index of industrial production (IIP), which measures the output at factories, mines and utilities, rose an annual 3 per cent in September, as compared to 2.7 per cent reported in the month of August.

At 07:30 a.m., Nifty India stock futures in Singapore were down 12 point at 5,707.50, indicating a lower opening on the domestic market.

The Nifty index failed to maintain gains made during the week and ended 52 points lower on Friday led by heavy selling in capital goods stocks, oil & gas and metal stocks.

"Indian markets slipped below its crucial level of 5720-5700 on the Nifty on Friday, which is not a positive sign atleast in the short term as it damages the Nifty's chart structure," says Mitesh Thacker of iteshthacker.com.

"We may witness a retest of the recent lows of 5600 to about 5590 on the Nifty. So if we start on a negative note on Monday, I would immediately brace for a touch of 5600 on the index," added Thacker.

The week will be a truncated one as the markets will remain closed on account of Diwali Festival on Tuesday (November 13, 2012) and on Wednesday (November 14, 2012).

However, a Muhurat trading session will be held on November 13, 2012 which will start at 3.45 pm and will end by 5.00 pm.

On Friday, US stocks ended marginally higher as investors preferred to wait on the sidelines as investors turned their attention from the presidential election to the coming negotiations over the "fiscal cliff."

"If the political parties in US not able to come to some consensus, at least a stop gap arrangement to postpone the deadline by few months, the US economy may slide back to a recession. So investors will be closely watching any news emerging on that front," ET reported.

The Dow Jones industrial average edged up 4.07 points, or 0.03 per cent, to 12,815.39 at the close. The Standard & Poor's 500 Index rose 2.34 points, or 0.17 per cent, to 1,379.85. The Nasdaq Composite Index advanced 9.29 points, or 0.32 per cent, to close at 2,904.87.

Asian shares were trading mixed weighed down by concerns over US fiscal woes as well as Greece's bailout. Japan's Nikkei stock average opened down 0.6 per cent.

"Prospects for a bailout for debt-stricken Greece remained unclear even after Greece on Sunday won a parliamentary approval for the 2013 budget law," Reuters reported.

US crude steadied around $86.07 a barrel on Monday. Brent fell 0.2 per cent to $109.22.

Japan's Nikkei 225 index was trading 0.5 per cent lower at 8709.17 and Hong Kong's Hang Seng index was trading higher at 21,409.12, up 0.12 per cent.

South Korea's Kospi index was trading 0.3 per cent lower at 1,898.45. China's Shanghai index was trading 0.17 per cent higher at 2,072.12.

Global Cues to watch out: 12th Nov: India Oct CPI data 12th Nov: India Sep IIP data 12th Nov: Germany Oct WPI 12th Nov: Euro Area Finance ministers meet in Brussels

Important corporate results to watch out: DLF, JP Associates, GMR Infrastructure, Nestle, Reliance Broadcast and Titagarh Wagons.