Pre-market: Nifty seen opening flat; may retest 8,150 levels

NEW DELHI: Domestic benchmark equity indices are likely to see a muted opening on Thursday, tracking muted trend seen in other Asian markets. Tracking the momentum, the index may retest its crucial psychological level of 8,150 levels.

However, after the initial dip, the index should be able to recoup losses and head higher.

At 08:00 A.M., Nifty India stock futures in Singapore were trading 6.50 points lower at 8,192 indicating a lower opening on the domestic market.

The 30-pack Sensex ended above the 27,000 mark on Wednesday while Nifty settled at 8,177. Provisional data available on the BSE website showed foreign portfolio investors (FPI) were net sellers to the tune of Rs 50 crore on Wednesday.

Domestic institutions, too, were seen selling stocks to the tune of Rs 219 crore.

"For me, the 8,050 level remains decisive. Maybe, we will see a stronger pullback over the next few days. Intraday dips would offer good buying opportunity. I expect 8,250 to be the first short-term target, but a rise towards 8,340-8,350 levels and even the 200-day average at 8,380 looks possible, which the index might hit before the October expiry," said Mitesh Thacker, Technical Analyst, miteshthacker.com

Ashwani Gujral, Fund Manager, Ashwanigujral.com, believes the 8,100 level would now act as support for Nifty. "IT and banking stocks are not really participating in the ongoing rally, which is being led by oil and metals. Banks or IT have to come back and participate, because this honeymoon of commodities is unlikely to continue. So, we may probably see further upside of another couple of hundred points, supported by global cues. But I would like to see more action from banks. They have been quiet for way too long."

Overnight, the S&P 500 index made several attempts to hit its psychological mark of 2,000 on Wednesday, but could only manage to hit a high of 1,999.31.

Bank of England's money policy review, German trade balance data and jobs report in the US will be key economic events for Thursday. Markets will also be tracking a speech by James Bullard, CEO of Federal Reserve Bank of St. Louis, later in the day.

John Williams, President of the Federal Reserve Bank of San Francisco, on Tuesday said he still expected the US central bank to begin raising short-term interest rates this year, despite slowing job gains in September. Weak jobs data released last week has largely diminished hopes of the US Fed raising interest rate in 2015.

Asian stocks excluding China were trading with a negative bias. Japan's Nikkei 225 index which was trading 0.51 per cent lower at 18,231, Hong Kong's Hang Seng index was trading 0.76 per cent lower at 22,351, and China's Shanghai index was trading 3.3 per cent higher at 3,153.