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Pre-market: Nifty seen opening higher; Infosys Q3 results eyed

Tracking the momentum, the Nifty index is expected to reclaim its crucial psychological level of 8,300 in trade today.

, ET Online|
Last Updated: Jan 09, 2015, 07.45 AM IST
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Tracking the momentum, the Nifty index is expected to reclaim its crucial psychological level of 8,300 in trade today. 
Tracking the momentum, the Nifty index is expected to reclaim its crucial psychological level of 8,300 in trade today. 
NEW DELHI: The 50-share Nifty index is expected to open higher on Friday following positive trend seen in other Asian markets. Tracking the momentum, the index is expected to reclaim its crucial psychological level of 8,300 in trade today.

However, investors will keep an eye on Infosys results for the quarter ended December 2014 which will be out later today. While the Q3 numbers are expected to be in line, the IT major may cut FY15 revenue guidance to 7 per cent, against the earlier band of 7-9 per cent, reports ET Now.

The company may even lower guidance to 6.5 per cent, say analysts tracking the sector. According to ET Now poll, Infosys may report net profit of Rs 3151 crore, up 1.77 per cent, from Rs 3096 crore in previous quarter.

At 07:30 a.m., Nifty India stock futures in Singapore were trading 71 points higher at 8,325 indicating a positive opening on the domestic market.

The S&P BSE Sensex surged in a technical pull-back rally after the recent sharp correction to close 365 points higher or 1.3 per cent at 27,274.71. The 50-share Nifty index rallied 132.50 points or 1.6 per cent to 8234.60 on Thursday.

Nifty managed to find support near the key level of 8060 and bounced back. It now has resistance placed in the range of 8300 - 8280 and beyond that 8365 is the next key resistance for the index.

"On the lower side the level of 8200 has now emerged as an immediate support. If Nifty manages to sustain above 8200 then it may inch higher till 8300 - 8365 in coming sessions," GEPL Capital said in a report.

"If the Nifty fails to cross 8300 then there is a high possibility that the decline that started couple of days back may resume and Nifty may retest 8145 and below that 8060 is possible," added the report.

Technically speaking, till the time Nifty stays below 8400, markets could move sideways after the recent bounce back. Nifty may face some resistance around 8300 levels where important short term daily moving averages are placed.

"I am still not sure that the short to medium term trend has changed on the upside, but at least in the next few days I do not think the gap would be filled easily - so the 8225-8230 level which I was looking at may be crossed and we might look at a slightly bigger range developing over here," says Mitesh Thacker, Technical Analyst, miteshthacker.com.

"I am still not sure as to how far we can go on the upside, but 8300 is a level where some kind of important short term daily moving averages are being placed. So may be for the time being we will start with some kind of a range bound outlook on the index," he adds.

Overnight, US stocks ended higher for a second day in a row, boosted by expectations the U.S. economy will continue to improve and by hopes for more aggressive action from the European Central Bank.

"Friday's December jobs report is expected to show 240,000 non-farm payrolls added. Also boosting sentiment, continued weak euro zone data has been lifting optimism that the European Central Bank will take more aggressive action," Reuters reported.

"U.S. crude oil, whose free-fall was among the catalysts for the recent selloff in stocks, gained for a second day, settling at $48.79 per barrel. The S&P energy index rose 2.2 percent," added the report.

The Dow Jones industrial average rose 323.35 points, or 1.84 percent, to 17,907.87, the S&P 500 gained 36.24 points, or 1.79 percent, to 2,062.14 and the Nasdaq Composite added 85.72 points, or 1.84 percent, to 4,736.19.

Asian shares were trading higher. Japan's Nikkei 225 index which was trading 0.6 per cent higher at 17277 and Hong Kong's Hang Seng index was trading 0.9 per cent higher at 24,049.

(What's moving Sensex and Nifty Track latest market news, stock tips and expert advice on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds.)

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