Markets To Open Flat, May Move In Narrow Range

Indian markets are expected to open flat tracking SGX Nifty. After seeing a significant rebound over the course of the previous session, stocks in US showed a substantial move back to the downside on Wednesday. The sell-off on Wall Street came as Chinese stocks extended their recent steep decline, with the benchmark Shanghai Composite Index plummeting 5.9% to a four-month low despite a series of market-stabilizing measures by authorities.

The majority of the European markets ended Wednesday's session in the green. The markets rose on renewed hopes for a debt deal, after Greece put in a request for a three year bailout program. The Wall Street Journal reported that Athens will offer some austerity measures to be implemented next week in return for financing. The Indian equities followed Asian stock markets lower on Wednesday, as concerns about an already slowing Chinese economy hit commodity prices and the Greek debt saga continued to take center stage. 

The trend deciding level for the day is 27,785 / 8,387 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 27,934 – 28,181 / 8,433 – 8,503 levels. However, if NIFTY trades below 27,785 / 8,387 levels for the first half-an-hour of trade then it may correct towards 27,538 – 27,389 / 8,317 – 8,271 levels.