Indian Markets May Open On Flat Note
Indian Markets May Open On Flat Note
The Indian markets are expected to open flat today ahead of the RBI’s monetary policy meeting. We expect the RBI to reduce the repo rate by 25bp from 7.50 percent to 7.25 percent. Meanwhile, major Asian indices are trading in the green today following an interest rate cut by the ECB and better-than-expected US jobless claims data. The US markets ended in the green on Thursday with S&P 500 closing at a record high after the European Central Bank (ECB) cut its benchmark interest rate and US jobless claims unexpectedly declined to a five-year low.
The ECB in its policy meeting reduced its benchmark interest rates by 25bp to 0.50 percent and signaled that another reduction is possible if needed to revive the ailing economy. Meanwhile in the US, upbeat jobs data generated positive sentiments, as the Labor Department release showed that initial jobless claims unexpectedly fell to a five-year low in the week ended April 27th. The report showed that initial jobless claims fell to 324,000, a decrease of 18,000 from the previous week's revised figure of 342,000. Back home in India, the domestic markets rallied on Thursday, shrugging off weak global cues, in anticipation of a rate cut at the RBI policy meeting which is scheduled today. Globally, participants would also keep an eye on the US monthly employment report which will be release today.
The trend deciding level for the day is 19,660/5,977 levels. If Nifty trades above this level during the first half-an-hour of trade then we may witness a further rally up to 19,86820,000/6,0426,085 levels. However, if Nifty trades below 19,660/5,977 levels for the first half-an-hour of trade then it may correct up to 19,52719,319/5,934-5,868 levels.
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