At 07:30 a.m., Nifty India stock futures in Singapore were trading flat at 6038.50, indicating a muted opening on the domestic market.
After opening with a gap-down on Tuesday, Nifty ended the day almost flat at 6000. It has achieved the initial target of 5970 and is now very close the 200 Day EMA support.
The turmoil in emerging market currencies, the Federal Reserve's decision to lower monthly bond purchase program and concerns over the strength of the Chinese economy have been some of the factors that pulled down the Nifty from near all-time high levels to 6,400.
"In the very short term as long as Nifty trades below the level of 6040 the bearish trend would remain intact. Only in case of a move beyond 6040 one can expect a bounce till 6100 to 6150 range which is again an opportunity to short sell or exit from pending stuck up long positions in the index," GEPL Capital said in a report.
"On the higher side the level of 6200 is the make or break level and Nifty would remain weak as long as 6200 is not taken," added the report. The brokerage firm advises revised target of 5800 for the index despite any bounce back from present levels.
Analysts say that given the kind of sell-off we have seen, there is a possibility of a pull-back but its strength will depend on global cues.
Overnight, US stocks bounced back on value buying after largest selloff seen in months.
The sell offs were primarily triggered by weaker-than-expected U.S. data, as well as concerns over growth in China and the outlook for some emerging economies.
"Investors have focused on macroeconomic data in the wake of a rout in emerging market currencies, which triggered rate hikes by some central banks," Reuters reported.
"That pressured stocks and bonds and forced investors to favor assets perceived as relatively safe, like the yen, U.S. Treasuries and German government debt," added the report.
The Dow Jones industrial average rose 72.44 points or 0.47 percent, to end at 15,445.24. The S&P 500 gained 13.31 points or 0.76 percent, to finish at 1,755.20. The Nasdaq Composite added 34.562 points or 0.86 percent, to close at 4,031.52.
Asian shares rebounded as Wall Street steadied and investors in emerging markets found some support.
However, the mood remained brittle and it would only take a poor U.S. payrolls report on Friday to set the bears running again, said the Reuters report.
Brent crude eased 4 cents to $106.00.
Japan's Nikkei 225 index was trading 1.3 per cent higher at 14,183 and Hong Kong's Hang Seng index was trading 0.48 per cent higher at 21,502.12. South Korea's Kospi index was trading 0.6 per cent higher at 1,898.
Important quarterly results to track on Wednesday:
BHEL, Power Grid, Ranbaxy Laboratories, Blue Dart, GlaxoSmith Consumer, Praj Industries, Redington India and TTK Healthcare.
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