Indian Markets to track negative opening in Asian Markets - Angel Broking

The Indian markets are expected to open in the red, tracking negative opening in most of the Asian markets as a sharp rebound in the yen, a commodity-price slump and caution ahead of a slew of Chinese economic data pulled investors to the sidelines. Chinese economic data came in weaker than expected, as the first quarter GDP came in at 7.7% against 7.9% growth in the fourth quarter. Also, China's industrial production for March came at 8.9% yoy vs an estimate of 10%.

The US markets ended modestly lower on Friday following weak March retail sales and consumer sentiment data. The Commerce Department released a report showing that retail sales fell by 0.4% in March after surging up by a revised 1.0% in February. Adding to the negative sentiment, Reuters and the University of Michigan released a report showing an unexpected deterioration in consumer sentiment in the month of April with the consumer sentiment index falling to 72.3 from 78.6 in March.

Meanwhile, Indian markets snapped two days of gains on Friday, with IT stocks coming under selling pressure after Infosys projected a modest revenue growth of 6-10% for the current fiscal, lower than Nasscom's estimate for 12-14% industry growth. A stronger rupee, soft consumer price inflation numbers and better-than expected industrial output data failed to lift investor sentiment.

The trend deciding level for the day is 18,256 / 5,523 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18,325 - 18,407 / 5,550 - 5,572 levels. However, if NIFTY trades below 18,256 / 5,523 levels for the first half-an-hour of trade then it may correct up to 18,173 - 18,104 / 5,501 - 5,473 levels.

Source : Equity Bulls

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