Indian Markets expected to open in red - Angel Broking

The Indian markets are expected to open in red tracking flat to negative opening in most of the Asian markets, on worries the Federal Reserve could downscale its bond purchases.

US markets ended lower in yesterday's trading session as comments from the Fed chief suggested the central bank may begin tapering its bond-buying program in coming months. The Fed chief told that a premature tightening of monetary policy carries a substantial risk of slowing or ending the economic recovery. However, Bernanke later acknowledged that upbeat economic data could lead the Fed to scale back its asset purchase program in the next few meetings. Meanwhile, the National Association of Realtors released a report showing a modest increase in existing home sales by 0.6% to a seasonally adjusted annual rate of 4.97mn in April from an upwardly revised 4.94mn in March.

Meanwhile Indian markets erased early gains to end modestly lower on Wednesday, as L&T results disappointed street and investors awaited Federal Reserve Chairman Ben Bernanke's testimony before the Joint Economic Committee of Congress later in the global day.

The trend deciding level for the day is 20,094 / 6,106 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 20,188 - 20,314 / 6,137 - 6,179 levels. However, if NIFTY trades below 20,094 / 6,106 levels for the first half-an-hour of trade then it may correct up to 19,969 - 19,875 / 6,063 - 6,032 levels.

Source : Equity Bulls

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