Indian Markets expected to open positive tracking strong SGX Nifty - Angel Broking

The Indian markets are expected to open positive today tracking strong cues from SGX Nifty. Meanwhile, major Asian indices are trading flat except for Japan which has rallied sharply on back of upbeat U.S. jobs data and the yen's weakness against the U.S. dollar.

After moving sharply higher over the course of the previous week, US stocks saw some further upside during trading on Monday. While trading activity was somewhat subdued, the markets continued to benefit from the recent upward momentum. The European markets ended modestly down on Monday, following the strong rally at the end of the previous trading week. The breakout on Friday was sparked by the better than expected U.S. jobs report for April. Trading volume was weak on Monday, due to the holiday for the U.K. market. Some weaker than expected economic data of Eurozone also dampened the mood at the start of the new trading week. However, the European Central Bank readiness to cut interest rates again if the economic situation in euro area continues to weaken prevented further downside.

Meanwhile, Indian shares rose modestly to end near a three-month high on Monday, with IT and metal stocks leading the gainers, with investors cheering the upbeat U.S. labor force report which sent Wall Street to an all-time closing high last week.

The trend deciding level for the day is 19,641 / 5,959 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 19,727 - 19,781 / 5,989 - 6,007 levels. However, if NIFTY trades below 19,641 / 5,959 levels for the first half-an-hour of trade then it may correct up to 19,587 - 19,501 / 5,941 - 5,911 levels.

Source : Equity Bulls

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