Indian Markets are expected to open flat today - Angel Broking

Indian markets are expected to open flat tracking almost flat to negative opening in most of the Asian markets while data showed that Chinese manufacturing activity contracted in June as monthly manufacturing PMI for June dropped to 50.1 from 50.8 in May.

US markets, after moving modestly higher in early trade on Friday, ended with losses as investors started to come to terms with the potential slowdown in the Federal Reserve's monetary stimulus program. Early in the day, some negative sentiment was generated by a report from the ISM Chicago which showed that its Chicago business barometer tumbled to 51.6 in June from 58.7 in May. Selling pressure waned not long after the open, however, with a better than expected reading on consumer sentiment helping to limit the downside for the markets. Thomson Reuters and the University of Michigan reported that their consumer index for June was upwardly revised to 84.1 from the preliminary reading of 82.7.

Meanwhile, Indian markets rose sharply on Friday, with energy stocks rallying after the government approved a gas price hike for the first time in three years to help boost domestic production and ease acute power shortages in the country. Finance Minister P Chidambaram hinted at moderating the price of fuel to the power and fertilizer industries to cope with the doubling of domestic gas prices.

The trend deciding level for the day is 19,307/ 5,815 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 19,521 - 19,647 / 5,880 - 5,918 levels. However, if NIFTY trades below 19,307/ 5,815 levels for the first half-an-hour of trade then it may correct up to 19,182 - 18,968 / 5,777- 5,711 levels.

Source : Equity Bulls

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