Indian Markets to track negative opening in SGX Nifty - Angel Broking

Indian markets are expected to open flat tracking flat to negative opening in SGX Nifty and most of the Asian markets.

After showing a strong move to the upside in early trading on Thursday, US stocks pared some of the gains as the day progressed but still managed to close mostly higher. The early strength on Wall Street was partly due to bargain hunting following the recent weakness in the markets, with the Dow and the S&P 500 rebounding after closing lower for five straight days. Positive sentiment was also generated by a report from the Labor Department showing an unexpected drop in initial jobless claims in the week ended September 21st. However, the early buying interest was partly offset by a report from the National Association of Realtors showing a bigger than expected drop in pending home sales in the month of August. The European markets ended Thursday's trading session with mixed results.

Concerns over a possible government shutdown in the U.S. continued to weigh on investor sentiment. Meanwhile, the political situation in Italy worsened Thursday, after the People of Freedom Party threatened to leave parliament if former Prime Minister Silvio Berlusconi is expelled from it.

Indian shares rose on Thursday, tracking a firmer rupee after the Reserve Bank of India assured markets that it would ensure adequate liquidity and also take necessary actions, including open market operations, to support the flow of credit to productive sectors of the economy ahead of the festival season.

The trend deciding level for the day is 19,906 / 5,888 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 19,985 - 20,076 / 5,912 - 5,942 levels. However, if NIFTY trades below 19,906 / 5,888 levels for the first half-an-hour of trade then it may correct up to 19,815 -19,736 / 5,858 - 5,834 levels.

Source : Equity Bulls

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