Markets may open flat with negative bias

In the last trading session, the index had displayed some signs of fatigue at higher levels and the global markets are tensed over the comment of the US President Donald Trump. Hence, the start of the day would be flat with a negative bias. The Nifty has support around the level of 11,812, and as long as it manages to hold this level, any pullback would be a 'buy on dips' opportunity. At the time of writing, SGX Nifty was trading at 11,907, down by 22 points. Adani Enterprises, Adani Power, BEL, Cadila Healthcare, Glenmark, Havells, IDFC, NBCC, PFC and Power Grid are among the results scheduled for the day.

Asian stocks have declined on Wednesday morning following overnight losses on the Wall Street. The Japanese stock index Nikkei 225 has plunged 1.50 per cent.  In South Korea, the KOSPI has plummeted 1.17 per cent and Hong Kong’s Hang Seng has edged lower by 0.39 per cent.

Back home, key Indian indices settled at record closing high for the third straight session on Tuesday. After opening the session on a positive note, the market exhibited a corrective move for a major part of the session. However, in the last leg of trading, bulls bounced back sharply to end in the positive terrain. The BSE Sensex added 0.17 per cent and Nifty advanced 0.03 per cent. The broader indices witnessed a breather, with Nifty Midcap and Smallcap dipping 0.01 per cent and 0.15 per cent, respectively. The sectoral indices exhibited mixed trend. Nifty Media, Nifty IT, Nifty Metal and Nifty Realty were top gainers, on flip side, Nifty Auto, Nifty PSU Bank, Nifty Financial Service were the top losers.

The US stocks started out on a positive note after a long holiday weekend. However, as the day progressed, this positive sentiment quickly faded and the markets started to turn lower as trade war worries came back to haunt after the US President Donald Trump said the US is not ready to make a deal and suggested China probably wished to make the deal instead of trying to renegotiate it. The Dow Jones dropped 0.9 per cent, the Nasdaq declined 0.4 and the S&P 500 slid 0.8 per cent. Meanwhile, on the economic front, the consumer confidence report for May came in better than expected.

The European stock indices finished lower on Tuesday on the back of heightened trade tensions between the US and China and concerns over high budget deficit in Italy, while, the Eurozone economic confidence improved in May. Germany’s benchmark DAX shed 0.37 per cent, France’s CAC 40 Index closed lower by 0.44 per cent and UK’s FTSE 100 lost 0.12 per cent.