BSE Sensex closes down 388 points at 19674 - Angel Broking

The Indian markets are expected to open flat tracking flat to marginally positive opening in most of the Asian markets, with relief buying emerging after the extreme losses indices suffered the previous day.

US markets ended modestly on Thursday, substantially paring intraday losses, as upbeat housing data helped offset worries about the Federal Reserve. The sell-off seen at the start of trading reflected lingering concerns about the Federal Reserve scaling back its asset purchase program as well as disappointing Chinese manufacturing data. A report released by Markit Economics and HSBC showed that Chinese manufacturing activity unexpectedly contracted in May as purchasing managers index fell to 49.6 in May from 50.4 in April. The subsequent recovery by the markets was partly due to the release of a report from the Commerce Department showing that new home sales in US climbed 2.3% to a seasonally adjusted annual rate of 454,000 in April from the revised March rate of 444,000.

Meanwhile Indian markets ended sharply lower in yesterday's trading session, following a global rout amid expectations that the Federal Reserve may reverse its ultra-easy monetary policy earlier than expected.

The trend deciding level for the day is 19,779 / 6,001 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 19,923 - 20,172 / 6,047 - 6,127 levels. However, if NIFTY trades below 19,779 / 6,001 levels for the first half-an-hour of trade then it may correct up to 19,530 - 19,386 / 5,921 - 5,876 levels.

Source : Equity Bulls

Keywords