Pre-market: Firm opening on cards

Pre-market: Firm opening on cards

Nifty may open gap up and test 5,700 in the opening trades following firm global cues. The Nifty futures on the Singapore Exchange advanced 51 points, at 5,684.

Markets across Asia advanced in the early trades led by firm US manufacturing data and easing of concerns over Greece. Exporter and financial shares were leading the gains in the morning session. Hong Kong’s Hang Seng Index advanced 1.6%, China’s Shanghai Composite Index added 1.1% and Japan’s Nikkei Stock Average was up 1.1%.

Back in India, the S&P CNX Nifty index rallied from lows of 5,250 and sailed past the 5,600 level in six trading sessions followed by some profit booking on Friday. The recent gains also helped lift sentiment, causing analysts to believe that there is more steam left in the rally. PINC Research in the weekly note said, “The index is heading toward 6,050-6,075, middle of the trend channel for over last 18 months, however, a minor blip to a larger uptrend cannot be ruled out.”

Analysts are betting that second half of FY12 will be better than first half as commodity prices ease and inflation comes off. Going forward monsoon and first quarter earnings will shape the direction of the market. Additionally after the summer session impasse in the parliament, there are expectations that the government may pass through some reforms in the monsoon session in sectors such as retail which may give further fillip to the markets.