Pre-market: Nifty seen opening lower; Jet Airways eyed

NEW DELHI: The 50-share Nifty index is expected to open lower on Tuesday tracking negative Asian markets, while investors will keep a close eye on Jet Airways on reports that the airliner may struck a deal with Etihad Airways for Rs 1600 cr by end of this month.

Jet Airways has agreed to sell 24% stake to Etihad Airways for Rs 1600 crore, ET NOW reported. The deal will be completed by year-end and the entity will seek MHA and FIPB clearance next year, aviation ministry sources told ET NOW.

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At 07:30 a.m., Nifty India stock futures in Singapore were down 11 point at 5,902.50, indicating a negative opening on the domestic market.

The Nifty index snapped its four-day winning streak and closed at 5870 level on Monday as investors turned focus on broader markets after a sharp rally in the frontline stocks.

Technically, Nifty is facing a resistance in the range of 5900-5950 level which requires some greater momentum to push the index above it.

"Weekly chart indicates that Nifty is trading in the higher top- higher bottom pattern a bullish island with support around 5600 levels. The long term uptrend remains intact as long as Nifty trades above 5600 levels supported by the rising channel," LKP Said in a report.

"In the coming sessions, Nifty may consolidate in the range of 5,800-5700 level. Buying is being witnessed in almost all sectors which is positive for coming sessions," added the report.

Overnight, US stocks ended lower as disappointing US factory numbers dampened investor sentiment.

"Manufacturing activity in the United States surprisingly contracted in November, the Institute for Supply Management said, dropping to its lowest level in more than three years," Reuters reported.

The Dow Jones industrial average fell 59.98 points, or 0.46 per cent, to 12,965.60 at the close. The Standard & Poor's 500 Index declined 6.72 points, or 0.47 per cent, to 1,409.46. The Nasdaq Composite Index dropped 8.04 points, or 0.27 per cent, to end at 3,002.20.

Asian shares dipped after US manufacturing activity hit a three-year low in November. On Monday, Asian shares touched a nine-month peak on Monday after China's official manufacturing purchasing managers' index (PMI) rose to a 7-month high of 50.6 in November.

Japan's Nikkei 225 index was trading 0.10 per cent lower at 9446.17 and Hong Kong's Hang Seng index was trading lower at 21,756.12, down 0.03 per cent.

South Korea's Kospi index was trading 0.5 per cent lower at 1,929.45. China's Shanghai index was trading 0.34 per cent lower at 1,954.12.

Global cues to watch out:

US

4th Dec - Total vehicle Sales for Nov. Survey of 14.8 mn vs prior 14.22 mn 4th Dec - Domestic vehicle sales for Nov. Survey of 11.3 mn vs prior 11.1 mn

Nifty F&O Cues:

Nifty futures added 3.5 lakh shares in Open Interest (OI)

Nifty 6000 call added 8.3 lakh shares in OI Nifty 6100 call added 9 lakh shares in OI Nifty 6200 call added 5.8 lakh shares in OI

Nifty 5500 call added 8.4 lakh shares in OI Nifty 5800 put added 7.3 lakh shares in OI