Pre-market: Global cues, F&O expiry may play spoilsport

Markets are expected to open gap down led by sell-off across Asia and weakness ahead of derivatives expiry this week. The Nifty futures on the Singapore Exchange were down 57 points, at 5422. 

In absence of any major domestic cues, markets may look up to global cues and futures and options expiry of May series. Market men expect volatility to spike up as traders shuffle their positions from May to June series.The India Volatility Index (VIX), a measure of near term risks which option traders perceive moved in the range of 18-22 in the past week.

Technical analysts expect markets to remain weak in the short term. Edelweiss in the morning note said, “for the fourth consecutive week the index has seen a negative trend as it makes lower tops and bottoms. The Momentum oscillators on the weekly chart have given a sell signal, whereas the short-term oscillators have rolled bullish.” Edelweiss expected a quick dash higher towards 5,500-5,550 where selling is likely to emerge.

Asian markets were trading lower in the morning session dragged down by auto makers and resource shares. The Nikkei Stock Average slipped 1.4% led by losses in banking shares. Hong Kong's Hang Seng plummeted 1.6% due to across the board sell-off and weakness in property shares. China's Shanghai Composite index was also down 1.1%.