Indian Markets expected to open flat to positive - Angel Broking

Indian markets are expected to open flat to positive tracking positive opening in most of the Asian markets, backed by better than expected manufacturing data from China with its PMI index for March coming in at 51.7 from 50.4 in February. US stocks ended higher over the course of the day yesterday after the Federal Reserve said it would continue to support the US economy. The FOMC decided to keep the target range for the federal funds rate at zero to 0.25% and said it would continue its asset purchase program at a pace of US$85bn a month. In his subsequent press conference, Federal Reserve Chairman Ben Bernanke expressed confidence in the economic recovery but indicated that the central bank would maintain its quantitative easing program for the foreseeable future. Also, market gained early strength as Cyprus' parliament rejected a proposed Cyprus European Union bailout plan that would tax bank deposits.

Indian markets extended losses yesterday on continued political uncertainty despite Finance Minister P Chidambaram dismissing reports of threat to the government in the aftermath of the withdrawal of support to the ruling UPA coalition by the DMK over the issue of alleged human rights violations of Sri Lankan Tamils. Worries about situation in Cyprus also kept investor sentiment subdued.

The trend deciding level for the day is 18,916 / 5,707 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18,996 - 19,108 / 5,732 - 5,770 levels. However, if NIFTY trades below 18,916 / 5,707 levels for the first half-an-hour of trade then it may correct up to 18,805 - 18,725 / 5,669 - 5,644 levels.

The trend deciding level for the day is 18,916 / 5,707 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18,996 - 19,108 / 5,732 - 5,770 levels. However, if NIFTY trades below 18,916 / 5,707 levels for the first half-an-hour of trade then it may correct up to 18,805 - 18,725 / 5,669 - 5,644 levels.

Source : Equity Bulls

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