Indian Markets expected to open flat with negative bias - Angel Broking

The Indian markets are expected to open flat today with a negative bias tracking marginally negative opening in SGX Nifty which is trading lower by 0.1%. Most of the Asian markets too are trading in the red.

US market saw some volatility on Wednesday but extended the recent upward move by reaching new record highs and ended the day in positive. The better than expected housing data offset negative sentiment generated by a separate report from the Federal Reserve showing a bigger than expected drop in industrial production in April. Thursday's trading could be impacted by another slew of U.S. economic data, including reports on weekly jobless claims, housing starts, and Philadelphia-area manufacturing activity along with the news on corporate earnings. Meanwhile, a similar trend was seen in the European markets despite weak GDP reports from Germany, France and the Eurozone. Traders also welcomed the news that the Bank of England raised its economic growth forecast.

Indian markets rallied to a 28-month high on Wednesday, buoyed by rate cut hopes after RBI Governor said the central bank will take note of falling inflation when discussing potential interest rate cuts.

The trend deciding level for the day is 20,084 / 6,108 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 20,371 - 20,528 / 6,196 - 6,246 levels. However, if NIFTY trades below 20,084 / 6,108 levels for the first half-an-hour of trade then it may correct up to 19,927 - 19,641 / 6,058 - 5,969 levels.

Source : Equity Bulls

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