Trend deciding level in Sensex, Nifty for the day is 19,604 & 5,937 levels - Angel Broking

The Indian markets are expected to open on a negative note tracking weak cues from SGX Nifty and most of the Asian indices on concerns that the Federal Reserve will scale back stimulus efforts as the U.S. economy improves.

The US markets experienced continued volatility over the course of the trading session on Tuesday before ending the day mostly lower. The lower close on Wall Street came as traders continued to express concerns about the timing of the Fed's plan to scale back its stimulus program. The markets were concerned after recent comments from some Fed officials that the central bank may taper the program within the next meetings. While traders largely shrugged off a report on the US trade deficit, anxiety ahead of the release of some more closely watched data later in the week generated some negative sentiment.

Meanwhile, Indian shares erased early gains to end modestly lower on Tuesday, with strength in the rupee and renewed hopes that the Federal Reserve would not taper its bond-buying program anytime soon helping to limit the downside to some extent. Going ahead, trading on Wednesday may be impacted by the release of some key economic data, including reports on private sector employment, labor productivity, and service sector activity. The Federal Reserve is also scheduled to release its Beige Book, a report consisting of anecdotal evidence on economic conditions in each of the twelve Fed districts.

The trend deciding level for the day is 19,604 / 5,937 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 19,685 - 19,824 / 5,964 - 6,008 levels. However, if NIFTY trades below 19,604 / 5,937 levels for the first half-an-hour of trade then it may correct up to 19,465 - 19,383 / 5,893 - 5,866 levels.

Source : Equity Bulls

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