Indian Markets expected to open in red tracking weak cues from SGX Nifty - Angel Broking

The Indian markets are expected to open in the red tracking weak cues from SGX Nifty and major Asian markets after weaker than expected US payroll data and slowdown in the pace of growth in the US manufacturing sector.

The US markets ended on a negative note on Wednesday as disappointing batch of US economic data weighed on the markets, prompting traders to indulge in profit booking. Sparking the negative sentiments, payroll processor ADP released a data showing that private sector employment increased by 119,000 jobs in April following a downwardly revised increase of 131,000 jobs in March. Economists were expecting an addition of about 155,000 jobs. Adding to the worries, the Institute for Supply Management released a separate report showing a slowdown in the pace of growth in the manufacturing sector in April. The purchasing manager's index fell to 50.7 in April from 51.3 in March. Further, stocks saw continued weakness in afternoon trading following the Federal Reserve's announcement of its latest decision on monetary policy. The Fed left interest rates unchanged and maintained the US$85bn per month pace of is asset purchase program.

Meanwhile Indian shares rose on Tuesday, with FMCG shares rallying after consumer goods giant, Unilever Plc., offered to pay Rs 600/share in an open offer to raise its stake in its Indian subsidiary to 75% from the current 52.48%.

The trend deciding level for the day is 19,481 / 5,920 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 19,645 - 19,787 / 5,972 - 6,015 levels. However, if NIFTY trades below 19,481 / 5,920 levels for the first half-an-hour of trade then it may correct up to 19,340 - 19,176 / 5,878 - 5,826 levels.

Source : Equity Bulls

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