Pre-market: Nifty seen opening flat; CPI, IIP data eyed

NEW DELHI: The 50-share Nifty index is expected to open flat on Monday following muted trend seen in other Asian markets. Tracking the momentum, the index is expected to retest its crucial psychological level of 8250 levels in trade today.

At 07:30 a.m., Nifty India stock futures in Singapore were trading 37 points lower at 8,277.50 indicating a positive opening on the domestic market.

Market participants would track IIP data for the month of October and consumer price index (CPI) numbers for December which will be released later today.

Nifty remained highly volatile throughout the session as it dipped in and out of the negative territory, but managed to give a positive close at 8284 adding 49 points to its value on Friday. The Sensex closed higher by 183 points at 27,458.

"Nifty managed to test the initial resistance of 8300 and may now inch higher till 8364which is the next resistance for the index in the immediate term," GEPL Capital said in a report.

"The present bounce back would remain intact as long as the index is able to sustain above the support of 8190. Only a breach of 8190 would be a sign of weakness which may take the index back down till 8100," added the report.

Generally, the earning season is one of the toughest month for traders due to excessive news flow and events taking place side by side. Erratic move in stocks during pre and post result causes serious damage to the capital; if not dealt properly.

"Traders are advised to maintain stock specific approach in coming weeks and religiously follow risk management rules to avoid any unmanageable loss," says Jayant Manglik, President-retail distribution, Religare Securities Limited.

"Investors should maintain a balanced portfolio in such market situation and add defensive like FMCG and pharma to hedge their long only portfolios," he adds.

On Friday, US stocks fell following a two-day rally as December's jobs report gave a mixed view of the economy, with financial shares leading the way lower. All three major indexes posted slight losses for the week and fell back into negative territory for 2015.

"U.S. nonfarm payrolls rose in December, topping Wall Street expectations, but wages unexpectedly fell," Reuters reported.

The Dow Jones industrial average fell 170.5 points, or 0.95 percent, to 17,737.37, the S&P 500 lost 17.33 points, or 0.84 percent, to 2,044.81 and the Nasdaq Composite dropped 32.12 points, or 0.68 percent, to 4,704.07.

Asian markets were trading mixed. Hong Kong's Hang Seng index was trading 0.6 per cent higher at 24,069 and China's Shanghai index was trading 0.57 per cent lower at 3,261.

Important results to track today:

Can Fin Homes, CMC Ltd, Jindal Poly Films Ltd, Kitex Garments Ltd and NRB Bearings Ltd.