Markets likely to open weak tracking global cues; WPI in focus

Disappointing IIP data, released after market hours on Friday, is likely to add to selling pressure

Markets are likely to open lower tracking global cues weighed down by sharp fall in crude oil prices. Disappointing Index of Industrial Production (IIP) data, released after market hours on Friday, is likely to add to selling pressure.

WPI inflation data for November will release today and developments in the ongoing Parliament session will also influence the markets.

Investors will also be eyeing the outcome of the Federal Open Market Committee (FOMC) monetary policy review tomorrow.

Further, markets would be keeping a note of corporate advance tax payment as that would provide clues on Q3 December 2014 corporate earnings.

Foreign institutional investors were net sellers in Indian equities worth Rs 864.96 crore on Friday, as per provisional stock exchange data. Meanshile, at 8:15, the SGX Nifty was trading at 8,230 down 42 points.

"The trend deciding level for the day is 27,454 (Sensex) / 8,254 (Nifty) level. If the markets trade above these level during the first half-an-hour of trade then we may witness a further rally up to 27,589 – 27,827 / 8,292 – 8,360 levels. However, if it trades below 27,454 / 8,254 levels for the first half-an-hour of trade then it may correct towards 27,216 – 27,082 / 8,186 – 8,149 levels," suggests a market outlook report from Angel Broking.

Among global markets, Japanese stocks fell on Monday after slumping oil prices toppled Wall Street shares, while investors drew little comfort from Prime Minister Shinzo Abe's landslide win in a snap election over the weekend.

The Nikkei benchmark sagged 0.8% to 17,227.79, after recovering slightly from a trough of 17,037.21 touched shortly after the open.

Last week, US stocks suffered their worst weekly drop for 2-1/2 years, as free-falling oil prices hit the energy and commodities sectors and raised the spectre of falling global demand and deflation.

STOCKS IN FOCUS

Capital Goods stocks will be in selling pressure tracking poor IIP data for the month of October.

Biocon is contemplating setting up a manufacturing facility in Visakhapatnam, Andhra Pradesh government said on Sunday.

Andhra Bank is looking to cut its base lending rate by March 2015 as tepid credit demand has weighed on banks that are flush with liquidity.