Pre-Market: Markets likely to open lower

Global cues muted

Stock markets are likely to open lower today following sell-off in major US share indices on Friday on the 25th anniversary of Black Monday, October 19, 1987 while weak earnings from General Electric and McDonalds further dampened investor sentiment.

The Dow Jones Industrial Average ended down 1.5 per cent, S&P 500 dropped 1.7 per cent and Nasdaq Composite slumped 2.2 per cent.

Stocks in Asia fell on account of disappointing earnings from major US companies and Japan's exports registered bigger-than-expected 10.3 per cent drop in September compared to last year.

According to technical experts, the Nifty is gyrating around its short-term moving average for the last eight trading sessions. There is lack of clarity on the daily and the weekly charts momentum oscillators hence await for a clear breakout before taking fresh positions. The range also seems to be getting narrower, with the NSE index now expected to swing in the range of 5,620-5,760. On Monday, the index is likely to seek support around 5,665-5,650, while face resistance around 5,705-5,715.

Among individual stocks, Bajaj Auto will be in focus after the two-wheeler major on Saturday reported better-than-expected net profit for the September quarter. The company reported 2 per cent rise in net profit at Rs 741 crore compared to Rs 726 in the same quarter last year.

Ultra-Tech Cement on Saturday reported nearly 100% rise in net profit for the September quarter. The company reported a net profit of Rs 550 crore compared with Rs 279 crore in the previous year quarter. Revenue increased 18.74 per cent to Rs 4,727 crore compared with Rs 3,981 crore.

Among the major companies that are scheduled to announced their second quarter earnings later today include L&T, HDFC, Cairn India and Bank of Baroda.