BSE Sensex closes down 112 points at 20112 - Angel Broking

The Indian markets are expected to open in green tracking marginally positive opening in most of the Asian markets, as indications that the Federal Reserve Bank wasn't close to slowing its asset purchases lifted investor sentiment.

US markets ended modestly higher in yesterday's trading session, after comments from two Federal Reserve officials suggested that the central bank is not close to tapering its bond-buying program. St. Louis Fed President said that the central bank should continue with its present bond-buying program and adjust the rate of purchases in view of incoming data on growth and inflation. The Fed's US$85bn a month asset-purchase program aims to boost economic growth and lower the jobless rate. The program has buoyed the stock market and its end - if not properly managed - may hurt sentiment among equity investors, potentially triggering a correction in the market.

Meanwhile Indian markets ended a choppy session notably lower on Tuesday, mirroring weak global cues as investors turned their focus to Fed chairman Ben Bernanke's Congressional testimony to Congress and the release of the Fed's May minutes due this Wednesday for cues on the outlook for interest rates.

The trend deciding level for the day is 20,164 / 6,136 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 20,256 - 20,399 / 6,158 - 6,202 levels. However, if NIFTY trades below 20,164 / 6,136 levels for the first half-an-hour of trade then it may correct up to 20,020 - 19,929 / 6,092 - 6,070 levels.

Source : Equity Bulls

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