Indian Markets expected to open flat to negative - Angel Broking

The Indian markets are expected to open flat to negative tracking negative opening in most of the Asian markets owing to concerns about the outlook for the Federal Reserve's asset purchase program.

US markets recovered from an early decline and ended in positive territory on Friday. The markets recovered after the release of a report from the Commerce Department that showed a larger-than-expected rebound in durable goods orders which surged by 3.3% in April after tumbling by a revised 5.9% in March. However, amidst an impending recovery in manufacturing activity following a recent pullback, the data added to worries that the Fed will taper its stimulus in the near future. Nevertheless, European markets ended the day lower, thereby extending the weakness from the previous day.

Meanwhile Indian markets ended higher on Friday, as sentiments improved a bit after two senior U.S. central bankers said that the Fed is in no hurry to start winding down its bond-buying program and policymakers have flexibility to increase the pace of bond buying should the economy weaken again.

The trend deciding level for the day is 19,702 / 5,979 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 19,835 – 19,967 / 6,020 – 6,057 levels. However, if NIFTY trades below 19,702 / 5,979 levels for the first half-an-hour of trade then it may correct up to 19,571 – 19,437 / 5,942 – 5,900 levels.

Source : Equity Bulls

Keywords