Pre-market: Markets likely to open on a cautious note

The Indian markets are likely to open on a cautious note ahead of the mid-quarter Monetary Policy review by the RBI today. Analysts expect the central bank keep key rates steady.

Asian shares edged up and the euro slunk higher on Friday, as signs of strength in the US economy temporarily broke through gloom over the European debt crisis that had driven a sell-off in riskier assets over the past three days.

US stocks rose modestly on Thursday, after a fall in US unemployment, a stronger-than-expected rise in regional factory activity and better-than-forecast results from FedEx Corp painted an improving picture of the economy.

Japan's Nikkei share average gained 0.4 per cent, while MSCI's broadest index of Asia Pacific shares outside Japan rose 0.3 per cent.

Back home, technical analysts peg the support for the Nifty at 4,700 and expect it to face resistance at 4,850 – 4,950 levels. At 710 a-m Indian Standard Time, the SGX Nifty was trading at 4,746; down 19 points.

Among individual stocks, watch out for interest rate sensitive stocks such as banking, auto and real estate as they react to the R-B-I’s review of the Monetary Policy.

Strides Arcolab has received USFDA nod for cancer drug. This can bring the stock back in focus today.

JSW Energy could also be in limelight today on reports that it has hiked stake in South African coal firm.

Reliance Capital is reported in talks with UTV to hike its stake in the company much beyond the 18 per cent it holds at present. This could bring back some investor interest in these stocks.

Aviation stocks could also be in limelight on reports that the oil firms have slashed the aviation turbine fuel prices by 1.38 per cent.