Pre-market: Nifty seen opening soft; Inflation data eyed

NEW DELHI: The 50-share Nifty index is expected to open soft on Friday tracking mixed Asian markets, while investors will keep a close eye on inflation data for the month of November.

At 07:30 a.m., Nifty India stock futures in Singapore were up 1 point at 5,880.50, indicating a soft opening on the domestic market.

Today’s inflation numbers will be an important factor contributing to RBI decision of a rate cut in the upcoming policy meet next week on Tuesday, December 18, say analysts.

“WPI inflation for the month of November is likely to dip slightly to 7.4 per cent as compared to 7.45 per cent recorded in the month of October,” according to an ET NOW Poll. However, core inflation is likely to remain high at 5.2 per cent levels.

Most analysts expect WPI inflation to ease in Jan-March quarter of 2013, helped by higher base effect.

The Nifty index ended 36 points lower at 5851 on Thursday, led by losses in ITC, Hindustan Unilever and L&T.

Technically, Nifty is facing resistance in zone 5,920-5,950 since last three trading sessions and today on intraday basis it broke the 5850 levels but somehow managed to closed above 5850 levels.

"If Nifty trades below 5850 levels in coming trading session more selling pressure may be witnessed," LKP said in a report.

"Momentum indicators such as Stochastic in daily chart shows negative crossover from the overbought zone which indicates that Nifty may correct till 5800-5750 levels," added the report.

LKP recommends investor to book profit on every rise with a view to renter longs on any decline till 5750-5800 levels.

Overnight, US stocks ended lower as lack of clarity on US budget talks cloud investor minds. Any delay in decesion making could result the world's largest economy into recession.

"The ``cliff'' is tax increases and government spending cuts that take effect Jan. 1 unless Congress and the White House reach a deal to avert them. Economists have warned that the tax increases and spending cuts could eventually lead to a recession," AP reported.

The Dow Jones industrial average finished down 74.73 points, or 0.6 percent, to 13,170.72. The Standard & Poor's 500 index dropped 9.03 points, or 0.6 percent, to 1,419.45. The Nasdaq composite index dropped 21.65 points to 2,992.16.

Asian shares edged lower on worries about US fiscal crisis which is far from over. US lawmakers are still clueless how to avert a fiscal crisis with an end-of-year deadline looming.

U.S. crude futures were up 0.6 percent at $86.36 a barrel.

Japan's Nikkei 225 index was trading 0.3 per cent lower at 9711.17 and Hong Kong's Hang Seng index was trading higher at 22,520.12, up 0.33 per cent.

South Korea's Kospi index was trading 0.7 per cent lower at 1,988.45. China's Shanghai index was trading 1.7 per cent higher at 2,098.12.

Global Cues to watch out:

China 14th Dec – Actual FDI for Nov. Survey of -3.1% 14th Dec – 7:15am. HSBC Flash Manufacturing PMI for Dec. Survey of 50.8

India 14th Dec – 12pm. WPI for Nov

Nifty F&O Cues

Nifty futures added 4.6 lakh shares in Open Interest (OI)

Nifty 5900 call added 5.6 lakh shares in OI Nifty 6000 call added 5.1 lakh shares in OI Nifty 6200 call shed 7 lakh shares in OI

Nifty 5700 put added 2.4 lakh shares in OI Nifty 6000 put shed 3.6 lakh shares in OI