Pre Market Watch

Indian market is likely to have a negative opening as the us market closed in red and Asian market closed in mixed territory. Also the statement by the media about the increase of securities transaction tax by the finance minister may add to the negative sentiments. On Wednesday, the Indian markets tumbled to close on a deep red note due to heavy selling pressure across the sectoral indices scrips. Finally, BSE Sensex declined by 678.18 points to close at 18,602.62 and Nifty dropped by 219.85 points to close at 5,561.05. We expect the market to remain cautious during the trading session.

On Wednesday, the US market closed in negative territory. The Dow Jones Industrial Average (DJIA) fell by 211.10 points to close at 12,799.04. The S&P 500 (SPX) index decreased by 22.93 points to close at 1,416.77 and the NASDAQ Composite (RIXF) dropped by 34.66 points to close at 2,562.15.

Indian ADRs ended in red. In technology sector, Satyam fell by (6.07%) along with Wipro by (4.18%), Infosys by (3.66%) and Patni computers by (0.52%). In banking sector, ICICI bank and HDFC bank dropped by (7.17%) and (5.97%) respectively. VSNL and MTNL slipped by (8.97%) and (6.42%) respectively.

The major stock markets in Asia are trading mixed. Hang Seng index is trading up by 179.03 points at 26,797.22. Japan''s Nikkei is trading lower by 59.75 points at 14,777.91. Taiwan weighted grew by 6.80 points to trade at 8,490.91. Seoul Composite is fell by 4.51 points at 1,802.48. Singapore Strait times grew by 2.83 points to trade at 3,350.03.

The FIIs stood as the net seller yesterday as the gross equity purchased was Rs.4,816.70 (in crores) and the gross debt purchased was Rs30 (in crores). The gross equity sold was Rs5,888.80 (in crores), and the gross debt sold was Rs65.30 (in crores). The net investment of equity was -Rs1,072.10 (in crores) and the net debt investment was -Rs35.30 (in crores).

Today, Nifty has support at 5,469 and resistance at 5596 and BSE Sensex has support at 18,215 and resistance at 18,816.