Indian Market expected to open in red mirroring SGX Nifty - Angel Broking

The Indian market is expected to open in the red mirroring negative opening trades in the SGX Nifty and most of the Asian markets as $85 billion of US spending cuts are set to begin. Also, a decade-low Indian GDP of 4.5% in 3QFY2013, reported after market hours yesterday, is expected to put pressure on Indian markets today.

The US market showed a relatively lackluster performance over the course of the trading day on Thursday, as traders seemed somewhat reluctant to make any significant moves. The choppy trading on Wall Street came on the heels of the release of a mixed batch of US economic data, with traders weighing weaker-thanexpected GDP data at 0.1% against upbeat reports on jobless claims which dropped to 344,000 (against 366,000 last week) in the week ended February 23, 2013; and Chicago-area business barometer rising to 56.8 in Feb-13 from 55.6 in Jan-13. The European markets ended in positive territory on Thursday, on the back of better than expected economic data from the US.

Meanwhile, Indian markets fell sharply on Thursday as the Union Budget proposed a 10% surcharge on individuals with Rs. 1cr income and slapped an added surcharge on local companies with taxable income of over Rs. 10cr. Also, bigger-than-expected outlay in the Budget for FY2014 continues to stoke fears of inflation and a tight monetary policy.

The trend deciding level for the day is 18,993 / 5,738 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 19,191 - 19,521 / 5,805 - 5,916 levels. However, if NIFTY trades below 18,993 / 5,738 levels for the first half-an-hour of trade then it may correct up to 18,663 - 18,464 / 5,627 - 5,560 levels.

Source : Equity Bulls

Keywords