Negative start in SGX Nifty to trigger Indian Markets to open in red - Angel Broking

The Indian markets are expected to open in the red following negative start to SGX Nifty and weak opening to major Asian Indices after US jobs and factory data missed estimates and as investors speculated whether the Federal Reserve will scale back bond purchases.

The US markets ended in the red on Wednesday extending the previous session losses as traders digested key economic reports on private sector employment and activity in the services sector. According to the ADP report, private sector jobs increased by 135,000 in May following a downwardly revised increase of 113,000 jobs in April. However, it was below the consensus expectations of 171,000 jobs. A separate report from the Institute for Supply Management showed that non-manufacturing index edged up to 53.7 in May from 53.1 in April. The Labor Department also released a report showing weaker than previously estimated productivity growth in the first quarter, while the Commerce Department reported a smaller than expected increase in factory orders in April. Further, according to Federal Reserve's Beige Book, economic activity increased at a modest to moderate pace across all the Fed districts except the Dallas district, which reported strong economic growth.

Going ahead, economic data will continue to attract attention on Thursday, with the Labor Department scheduled to release its report on weekly jobless claims. Trading activity may be somewhat subdued, as traders may be reluctant to make any significant moves ahead of Friday's monthly jobs report.

The trend deciding level for the day is 19,538 / 5,914 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 19,635 - 19,701 / 5,945 - 5,966 levels. However, if NIFTY trades below 19,538 / 5,914 levels for the first half-an-hour of trade then it may correct up to 19,472 - 19,375 / 5,893 - 5,863 levels.

Source : Equity Bulls

Keywords