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Nifty may open flat and trade sluggish; traders eye 8500

In the US stocks closed lower as investors attempted to find clarity on the timing of an interest rate hike amid concerns of the dollar’s impact on earnings.

Equity benchmarks are likely to open sluggish and trade in a narrow range Wednesday, tracking the listless trend in global markets.

The Nifty Tuesday closed at 8542 and the Sensex at 28161. Technical analysts are now watching if the Nifty will be able to hold the psychologically crucial support level of 8500. They see more weakness if the index fails to sustain above this level.
The SGX Nifty was trading nearly flat at 8580.

Overnight, US indices closed weak for the second successive session Tuesday.  The Dow Jones Industrial Average shed 0.6 percent to close at 18,011.14, barely above the psychological level of 18,000. The Nasdaq Composite Index slipped 0.33 percent to close at 4,994.73.

Macro indicators like inflation and housing sales data pointed to further strengthening of the economy, and stoking expectations that the Fed may hike rates ahead of schedule.

Asian shares were flat in morning trade, with Japan, Singapore and Korea slightly higher, and Hong Kong and Taiwan trading down.

European shares ended mostly higher Tuesday, but investors are nervously eyeing developments in Greece. Reports suggest that Greece will run out of funds by April 20 unless it receives fresh aid from creditors.

Gold continued to rise for the fifth straight session in a row, and Nymex crude closed slightly higher. Dollar recovered against the euro after two straight sessions of losses.

Stocks that would be in news back home are Sun Pharma which  has a press conference in the morning, GMR Infra on back of news that GMR Airports will acquire 10% equity stake in DIAL for USD 79 m. Also Tata Motors, the board will discuss rights issue today.

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