Indian Shares are expected to open lower on weakness in SGX Nifty - Angel Broking

Indian shares are expected to open lower today, tracking weakness in the SGX Nifty and most of the Asian indices.

After moving sharply lower at the start of trading on Tuesday, US stocks saw some volatility over the course of the session but maintained a negative bias throughout the day. The weakness visible on Wall Street was partly due to a negative reaction to the Bank of Japan's latest monetary policy decision to retain its target of doubling the monetary base in two years but not announcing any new steps to curb bond market volatility. Meanwhile, the European markets ended Tuesday's session firmly in negative territory. European markets took a cue from the strong declines in Asia, after the Bank of Japan failed to expand stimulus measures.

Back home, Indian shares fell sharply on Tuesday on worries that a weaker rupee would undermine the government's fiscal and economic measures that helped spark a surge in FII inflows in recent months. The rupee fell to a record low of 58.98 early in the session before rebounding to 58.40 versus the dollar in the afternoon, amid reports of dollar sales by PSU banks acting at the behest of the RBI.

The trend deciding level for the day is 19,228 / 5,812 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 19,334 - 19,525 / 5,844 - 5,900 levels. However, if NIFTY trades below 19,228 / 5,812 levels for the first half-an-hour of trade then it may correct up to 19,037 - 18,930 / 5,757 - 5,725 levels.

Source : Equity Bulls

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