Nifty flat; Hong Kong, Tokyo, South Korea at 6-month high

ALSO READ See Key Market Stats - Top Gainers/ Losers, Most Actives, Highs/Lows See how Global Markets are trading Indian ADRs

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 1-3%.

Movers & Shakers

Top gainers on the BSE Midcap: Lanco Infratech, Godfrey Phillip, Marico, Ruchi Soya and Puravankara Projecst were up 4-6%.

Top losers on the BSE Midcap: India Cements, Voltas, Kirloskar Oil, Shree Global and Blue Dart were down 2-3%.

Top gainers on the BSE Smallcap: EPC Irrigation, Great Offshore, Symphony, Sundaram-Clayton and OCL Iron were up 7-20%.

Top losers on the BSE Smallcap: Borosil Glass, Guj Amb Exports, Foseco India, Shree Ram Urban and PFL Infotech were down 5-14%.

Chart Check

The Nifty closed above psychological resistance levels after sentiments turned bullish across the Asian markets. The daily momentum suggests that the NIFTY has immediate resistance at 5560. If it breaks 5560 we could see the next key resistance levels of 5640 or even 5703. On the downs side, the NIFTY has found the support at 5460 and 5410 levels.

The currency market is closed today. The euro slid 0.4 percent to around $1.3015 as uncertainty over the bailout package put the single currency under renewed pressure.

The US markets closed lower. The Dow logged its sharpest decline this year as the deadlock over the Greece debt situation made investors nervous. Apple tumbled in trade closing below 500 dollars a share, thereby weighing heavy on the S&P and the Nasdaq.

Data To Watch

Australia: Unemployment Rate Jan (Exp 5.3%, Prior 5.2%)

US: Minutes of FOMC Meeting

US: Initial Jobless Claims (Exp 365K, Prior 358K )

US: Housing Starts Jan (Exp 675K, Prior 657K)

US: Housing Starts MoM Jan (Exp 2.7%, Prior - 4.1%)

Market cues:
FIIs net buy USD 232 million in cash market on Jan 14
MFs net buy Rs 52 crore in cash market on Jan 14
Sensex rallied 17.5%, Nifty up 19% YTD
Dow Jones has steepest fall in 2012
Express intent to expand investment in Europe
Eurozone finance officials looking to delay part of Greek bailout until after the country's April elections, without triggering a default.

F&O cues:
Nifty PCR rose to 1.61 from 1.47
Total Put adds 52.1 lakh shares, call sheds 15.8 lakh shares
Nifty 5300 Put, 5400 Put and 5200 Put seeing highest Total OI
5500 Put saw selling; adds 33 lakh (166%) shares in OI; prem down 66%
5600 Put saw selling; adds 15.20 lakh (400%) shares in OI; prem down 54.5%
5800 Call saw buying; adds 2.2 lakh (18.7%) shares in OI; prem up 106.5%
5700 Call saw buying; adds 16.2 lakh (53.5%) shares in OI; prem up 152%
5600 Call saw buying; adds 10.19 lakh (23.7%) shares in OI; prem up 180.5%
Stock futures OI adds 4.2 Cr shares in OI
Nifty future sheds 15.3 lakh shares in OI
Nifty Feb futures trading at 20.6 premium versus 24.3 premium to spot
India VIX closed at 22.1 down by 2.69%