Pre-market: Nifty seen opening soft; CARE lists today

NEW DELHI: The 50-share Nifty index is expected to open soft on Wednesday tracking muted Asian markets, while investors will keep a close eye on CARE which will make its debut on bourses later today.

At 07:30 a.m., Nifty India stock futures in Singapore were down 09.50 point at 5,870.50, indicating a soft opening on the domestic market.

Credit Analysis and Research Limited (CARE) will list its equity shares later today. Credit rating agency has fixed the issue price at higher end of price band of Rs 700-750 per share.

“The Rs 540-crore initial public offering (IPO) by the rating agency received bids worth around Rs 19,000 crore may list at a premium of Rs 150 over the issue price of Rs 750,” ET reported.

The Nifty index ended 8 points higher at 5855 in choppy trade on Monday, as gains in Tata Motors and IT stocks marginally outweighed the losses in ONGC, ITC and Reliance Industries amid mixed global cues.

Nifty continues to show consolidation in upper range of 5850-5965 however, some profit-booking has been seen in last three trading sessions, and volumes too have lowered relatively.

“However, despite the selling in some of the sectors, it is still holding above 5850 level in near term, which is a positive indicator. Any positive news can lead to upward breakout of the range” LKP Securities said in a report.

“Last three days have given bearish signal and Nifty has closed near the lower side of the range of 5850-5965. Indecision shall be there till Nifty trades within this range,” the report added.

LKP still believe that uptrend is intact and it is a stock picker market and buying on dips will be profitable.

On Monday, US stocks edged lower as deadlock in U.S. budget talks kept investors on the side lines ahead of the Christmas break.

The Dow Jones industrial average ended down 51.76 points, or 0.39 per cent, at 13,139.08. The Standard & Poor's 500 Index was down 3.49 points, or 0.24 per cent, at 1,426.66. The Nasdaq Composite Index was down 8.41 points, or 0.28 per cent, at 3,012.60.

Asian shares were capped in thin holiday trade weighed down by uncertainty clouding decision on US fiscal cliff. "US lawmakers and President Barack Obama were on Christmas holiday and talks were unlikely to resume until later in the week," Reuters reported.

Japan's Nikkei stock average opened up 0.5 percent, after recapturing the key 10,000 mark it ceded on Friday. Hong Kong and Australia remain closed on Wednesday.

US crude was down 0.1 per cent to $90 a barrel.

Japan's Nikkei 225 index was trading 0.4 per cent higher at 10121.17 and China's Shanghai index was trading 0.03 per cent lower at 2,212.12.

Nifty F&O Cues:

Nifty futures added 3 lk shares in Open Interest (OI)

Nifty 5900 call sheds 7.5 lk shares in OI Nifty 6000 call sheds 8 lk shares in OI Nifty 6100 call sheds 7.7 lk shares in OI

Nifty 5500 put sheds 12 lk shares in OI Nifty 6000 put sheds 5.1 lk shares in OI