Indian Markets expected to open in red tracking negative opening in SGX Nifty - Angel Broking

Indian markets are expected to open in the red today tracking negative opening trades in SGX Nifty and most of the Asian bourses. Asian markets are trading lower as better-than-forecast monthly US jobs report has fueled speculation that the Federal Reserve may begin reducing stimulus this year.

US markets moved mostly higher over the course of the trading session on Friday. The strength on Wall Street came following the release of the report from the Labor Department showing stronger than expected job growth in the month of June. Majority of European markets finished in the red on Friday, following the strong rally of the previous session. The unexpected decline in Germany factory orders weighed on investor sentiment. Also, investors were unsure about what an upbeat U.S. jobs report may mean in terms of potential stimulus tapering by the Federal Reserve.

Meanwhile, Indian markets pared early gains on Friday, as weak rupee and caution ahead of U.S. jobs data due later in the day limited the upside. President Pranab Mukherjee signed the ordinance on Food Security Bill, which will lapse if the Parliament fails to pass the bill within six weeks of the first sitting of the monsoon session expected to start in late July.

The trend deciding level for the day is 19,538/ 5,876 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 19,598 - 19,700 / 5,893 - 5,918 levels. However, if NIFTY trades below 19,538 / 5,876 levels for the first half-an-hour of trade then it may correct up to 19,436 - 19,375 / 5,851 - 5,834 levels.

Source : Equity Bulls

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