Indian Markets slump on trade deficit data - Angel Broking

The Indian markets are expected to open flat today with a positive bias tracking positive opening in SGX Nifty which is trading higher by 0.24%. Most of the Asian markets too are trading in the green.

US markets showed a lack of direction on Monday after moving modestly lower in early trading. Upbeat retail sales data released by the commerce department helped to limit the early downside. The Commerce Department said retail sales inched up by 0.1% in April following a revised 0.5% decrease in March. The modest increase in retail sales surprised economists, who had expected it to dip by 0.3%. The European markets which got off to a weak start to the new trading week, due to the weaker than expected Chinese industrial production data, pared their losses in the afternoon, following the better than expected U.S. retail sales report.

Meanwhile India's key benchmark indices slumped after the latest data released by Commerce Ministry showed that the country's trade deficit widened in April 2013. The monthly trade deficit widened to USD17.8bn in April, from USD10.3bn in March and USD14.1bn in April 2012. The markets would keenly observe monthly WPI data to be released during the day.

The trend deciding level for the day is 19,823 / 6,019 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 19,978 - 20,264 / 6,066 - 6,151 levels. However, if NIFTY trades below 19,823 / 6,019 levels for the first half-an-hour of trade then it may correct up to 19,536 - 19,381 / 5,934 - 5,887 levels.

Source : Equity Bulls

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