Sensex, Nifty to open on a positive note

Nifty is showing some signs of creating a short term base. However, 7240 is acting as a critical resistance; a breach above the same would mean that Nifty would make a dash towards the 7365 mark.

The Budget session of Parliament will get underway with President Pranab Mukherjee addressing the joint session of Parliament.  To what extent the government can handle the differences to turn their dreams into reality will be closely watched.  Oil prices skyrocketed  on Monday. OPEC may consider other steps to tackle ongoing global glut if a recent deal to freeze current output holds for several months. US stock indices rallied on Monday on the back of a 6% jump in oil prices

The outlook is a positive start. Nifty is showing some signs of creating a short term base. However, 7240 is acting as a critical resistance; a breach above the same would mean that Nifty would make a dash towards the 7365 mark. As the week progresses, volatile trading sessions are in store amid derivatives expiry. In fact indices could turn choppy at higher levels today itself.  The currency movement will also be in focus. The dollar climbed, helped by the British pound’s decline amid uncertainty over the outcome of the June referendum to decide UK's future as EU member.

Most international models indicate that El Nino would subside by summer, creating neutral conditions for the southwest monsoon season in the country, reports a business daily.

Shares of United Technologies Corp. and Honeywell International Inc. rose on Monday after a business television channel reported that the two companies had held merger talks.

US buyout firm KKR and Ultra-Tech, are in the race to acquire cement division of Jaiprakash Associates, according to reports.

ADRs of Tata Motors, Infy, Vedanta advanced on Wall Street. US stock indices rallied on Monday on the back of a 6% jump in oil prices with the Dow Jones Industrial Average gaining more than 200 points.  The Dow advanced by 228.67 points, or 1.4%, to end at 16,620.66 with 29 of its 30 members closing higher. The S&P 500 index climbed 27.72 points, or 1.4%, to close at 1,945.50.  The energy sector was up 2.2%. All ten main sectors of the S&P 500 index closed higher, while half of them outperformed the broader market. The Nasdaq Composite index surged by 66.18 points, or 1.5%, to settle at 4,570.61.

The expiring March crude futures jumped 6.2%, to settle at US$31.48 a barrel, after Baker Hughes reported a decline in oil rigs on Friday. It was the ninth straight weekly drop in the US rig count. Gold futures dropped 1.7% to settle at US$1,210.10 an ounce.

The ICE US Dollar index - which measures the dollar against a basket of six major currencies - jumped 0.8% to 97.37.