Morning Bell.....Nifty tests 5500,5100 is likely to be a strong support for the Nifty

Indian Markets

The Sensex was down 89.26 points or 0.49% at 18113.15, and the Nifty was down 28.20 points or 0.51% at 5503.75.

About 1321 shares have advanced, 1078 shares declined, and 1000 shares are unchanged.

The Indian market opened on a negative note tracking weak global cues. The Nifty is now trading at the highest level in more than six months. China reiterated that the country will continue to invest in European government debt to help resolve Europe's debt problems. Key benchmark indices in Hong Kong, Tokyo and South Korea also rallied to six-month highs.

The Sensex was down 36.33 points or 0.20% at 18166.08, and the Nifty was down 16.15 points or 0.29% at 5515.80. About 748 shares advanced, 441 shares declined, and 2210 shares remain unchanged.

In the largecap space, BHEL, Jindal Steel, Tata Power, NTPC and Larsen were up 1-5%. Coal India, Sun Pharma, Sterlite Industries, DLF and Reliance were down 1

Global Markets

U.S. stocks closed lower on Wednesday as the euro hit a 1-week low on uncertainty over Greece's debt problems. Dow Jones tumbled 97 points, or 0.7%, to end at 12,781. S&P 500 fell 7 points, or 0.5%, to 1,343. Nasdaq dropped 16 points, or 0.5%, to 2,916.

Today, the Asian markets are trading lower with Shanghai & Hang Seng trading lower by 0.1% & 0.7% respectively. Nikkei & Strait Times are trading in the red by 0.3% & 0.7% respectively, while Kospi & Taiwan are trading lower by 1.1% & 0.4% respectively. SGX Nifty is trading lower by 17.5 points over Wednesday?s close.

Currencies

The Indian Rupee ended stronger on Wednesday vs the US Dollar buoyed by large gains in local shares, but off its day's highs on persistent dollar demand by oil firms.

Outlook

Today, the Indian Markets could open lower following negative global cues and trade in a range with negative bias throughout the session. Considering a sharp run up over the last few trading sessions we expect some correction to take place in near term. Strong support for Nifty is at 5435, while immediate resistance is at 5575. Among the sectoral indices, Realty, Banks & Capital Goods could witness some profit taking after a sharp run up yesterday.

Sources- HDFC SEC, moneycontrol