Indian Markets to open on a positive note tracking SGX Nifty and Asian Indices - Angel Broking

Indian markets are expected to open on a positive note tracking positive start to SGX Nifty and most Asian indices following Federal Reserve's announcement that they are not in a hurry to raise short-term interest rates though the unemployment rate has come down markedly.

The US markets ended nearly unchanged on Wednesday as lingering uncertainty about the outlook for the Federal Reserve's stimulus program weighted on the markets. The markets showed a lack of direction for much of the session before seeing considerable volatility following the release of the minutes of the Federal Reserve's latest monetary policy meeting. The minutes appeared to confirm that the central bank is moving closer to tapering its asset purchase program, although the timing remains unclear. Nonetheless, most of the members were of the opinion that further improvement in the outlook for the labor market would be required before it would be appropriate to slow the pace of asset purchases. Meanwhile, traders largely shrugged off a report from the Commerce Department showing an unexpected drop in wholesale inventories in May. The report also showed a notable increase in wholesale sales.

Back home, domestic markets ended weak on Wednesday as investors adopted a cautious stance ahead of the release of the minutes of the US Federal Open Market Committee's June meeting and Fed Chairman Ben Bernanke's speech on economic policy due later in the day.

The trend deciding level for the day is 19,346/ 5,833 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 19,454 - 19,614 / 5,863 - 5,909 levels. However, if NIFTY trades below 19,346 / 5,833 levels for the first half-an-hour of trade then it may correct up to 19,186 - 19,078/ 5,787 - 5,756 levels.

Source : Equity Bulls

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