US Markets show lack of direction - Angel Broking

Indian markets are expected to open in the red tracking negative opening trades in SGX Nifty and the other Asian indices which are trading in the negative zone.

The US markets showed lack of direction throughout much of the trading on Friday before ending the day mixed. The choppy trading seen over the course of the session was on the back of the comments from Federal Reserve Chairman Ben Bernanke that the Fed might be able to unwind some of its asset purchases if economic conditions warrant later this year. European markets extended their losses and finished the day in red for fourth consecutive session reacting negatively to the comments of Fed Chairman.

Meanwhile, Indian markets rebounded from two month low and ended the session marginally higher on Friday. Weakness came in on the heel of heightened worries about the Federal Reserve scaling back its stimulus measures sooner than expected before and the rupee slipping in early trade.

The trend deciding level for the day is 18,737/ 5,657 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18,858 - 18,942 / 5,697 - 5,726 levels. However, if NIFTY trades below 18,737 / 5,657 levels for the first half-an-hour of trade then it may correct up to 18,653 - 18,531 / 5,628 - 5,588 levels.

Source : Equity Bulls

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