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Indian markets could open flat, in line with small range moves in Asian markets today and mixed/flat US markets on Tuesday.. HDFC Securities

The S&P 500 index and Nasdaq closed slightly higher Tuesday but investors remained in a wait-and-see mode ahead of another round of inflation data later in the week, with the U.S. economy recovering, while equity market valuations remain high. European stocks hit new highs on Tuesday, lifted by travel and real estate shares, but weak German industrial output data and doubts over Britain lifting restrictions later this month capped gains.

U.S. job openings surged by nearly one million to a new record high in April, while more people voluntarily left their employment, strengthening the view that a recent moderation in job growth was due to supply constraints. Job openings, a measure of labor demand, increased by 998,000 to 9.3 million on the last day of April, the highest level since the series began in December 2000.

U.S. April international trade deficit narrowed to $68.9 billion from a record $75 billion a month earlier.

China’s factory gate prices increased at the fastest pace since September 2008, official data showed on Wednesday, while consumer inflation also accelerated but at a slower-thanexpected rate. The producer price index (PPI) rose 9.0% from a year earlier in May. Analysts in a Reuters poll had expected the PPI to rise 8.5% after a 6.8% increase in April. The consumer price index (CPI) rose by 1.3% from a year earlier. Analysts in the poll had expected the CPI to rise 1.6% after a 0.9% increase in April.

U.S.-China relations are back in the spotlight as the U.S. Senate voted 68-32 on Tuesday to approve a sweeping package of legislation intended to boost the country’s ability to compete with Chinese technology. The measure authorizes about $190 billion for provisions to strengthen U.S. technology and research - and would separately approve spending $54 billion to increase U.S. production and research into semiconductors and telecommunications equipment, including $2 billion dedicated to chips used by automakers that have seen massive shortages and made significant production cuts.

The World Bank on June 8 projected India's economy to grow at 8.3 per cent in 2021. Earlier, the World Bank had estimated Indian economy to grow at a pace of 10.1 percent in FY 2021-22. Citing the reason to slash the FY22 growth of Indian economy, it said that India has been hampered by the largest outbreak of coronavirus cases that any country has seen since the beginning of the pandemic.

Asia Pacific stocks were mostly down Wednesday morning but moves remained small. Investors digested mixed inflation data from China while awaiting the same data from the U.S later in the week.

Indian Benchmark equity indices closed marginally lower after a crisscross trading session on June 08. At close, the Nifty settled with a nominal loss of 12 points, or 0.07 percent, 15,740.10.

Nifty made an almost double top compared to the previous trading session but closed nominally lower. The advance decline ratio though in the positive, is falling and hence showing signs of profit taking across the markets. Sector rotation continues as does some specific stock rotation based on news and developments. 15630-15840 remains the band for the Nifty for the near term.

Daily Technical View on Nifty

Nifty : Continuation of an Uptrend

Nifty has registered new all time high at 15778 but closed with minor losses, to close at 15740. Nifty Small cap Index has registered fresh all time high by surpassing the previous all time high of 9656 seen in Jan 2018. From the Intraday low of 15680, Nifty recouped some of the losses. Nifty found support on its 5 days EMA, which is placed at 15679. Nifty has not violated 5 days EMA support for last 13 sessions, indicating bullish short term trend Rising ADX on daily basis indicates the strength in the current uptrend Though RSI has reached overbought zone on daily chart, it has not shown any negative divergence as of yet. Next Upside Target for Nifty is seen at 16000 odd levels Supports for the Nifty are seen at 15680 and 15600 Trend of the Market is expected to remain strong IT, Pharma and Realty Sector looks the strongest on short term charts

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