Indian Markets to track SGX Nifty which is trading higher by 0.45% - 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 0.45%. Most of the Asian markets too are trading in the green.

The US stocks, extending the upward trend seen over the past month, moved notably higher on Tuesday despite negative sentiment generated by the news that JP Morgan (JPM) lowering its growth outlook for the Chinese economy. The gains lifted the Dow and the S&P 500 to new record highs, while the Nasdaq set another new twelve-year high. Meanwhile, the European markets were weak in early trade Tuesday, largely due to the smaller than anticipated increase in German investor confidence. However, the markets reversed direction after investors were encouraged by the positive performance of the U.S. markets.

Indian markets posted modest gains on Tuesday after government data showed India's headline inflation slowed for a third straight month in April, allowing room for the RBI to extend monetary easing to revive flagging growth. Inflation based on the wholesale price index slowed to a 41-month low of 4.89% in April from 5.96% a month ago, with prices of food, manufacturing products, fuel and power all showing a tendency to decline.

The trend deciding level for the day is 19,736 / 5,997 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 19,818 - 19,915 / 6,024 - 6,053 levels. However, if NIFTY trades below 19,736 / 5,997 levels for the first half-an-hour of trade then it may correct up to 19,639 - 19,556 / 5,968 - 5,941 levels.

Source : Equity Bulls

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