Pre-market: Cautious start likely

Nifty has support at 5,620 levels, analysts say

Markets are likely to see a cautious opening following overseas bourses. From here on, markets would be looking towards the corporate earnings season for direction.

US stocks edged lower on Monday after the World Bank cut its growth forecasts for East Asia, underscoring concerns about the global economic climate and corporate profits on the cusp of the kickoff of the quarterly earnings season. Dow Jones and Nasdaq shed more than 20 points each.

In Asia, Nikkei slipped, mirroring Wall Street losses. The index was down 53 points at 8810. At 700 hrs IST the SGX Nifty was up 33 points at 5,727.

According to technical analysts, the Nifty has now logged significant losses in back-to-back trading sessions today. The index now seems likely to test its 20-day DMA at 5,600, in the interim the index may seek support around 5,640. On Tuesday, the Nifty is likely to seek support around 5,645-5,620, while face resistance around 5,710-5,730.

STOCKS TO WATCH

Among individual stocks, Reliance Power started production from captive coal mines allotted for its showcase Sasan Ultra Mega Power project last month despite a government directive asking the company to stop mining activities until a few formalities are over. The news bring the stock in focus.

Aban Offshore could also see some action on reports that the company has received an order worth Rs 800 core from Petronas Carigali Sdn.

IRDA has approved the transfer of shares from existing shareholders of MetLife Insurance to Punjab National Bank under a deal between PNB and MetLife. IRDA has approved the transfer on the condition that shares held by PNB would be locked-in for five years from the date of transfer.

Essel Group today sold an additional 1.5% stake in the IVRCL for a little over Rs 20 crore. The Hyderabad-based company's shares were sold today through bulk deal at NSE - after Subhash Chandra-led Essel Group firms had last week sold about 8% in IVRCL.