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Indian markets could open flat to mildly higher, despite largely negative Asian markets today and negative US markets on Tuesday  -  HDFC Securities

U.S. stocks ended lower Tuesday, giving up early gains inspired by a softer-than-expected August inflation reading, as investors fretted that underlying price pressures may still prove persistent. Investors digested fresh inflation data ahead of the Federal Reserve’s policy meeting next week, with stocks falling after initially moving higher on the U.S. government report Tuesday that the rise in the cost of living slowed in August. The increasing likelihood of a corporate tax rate hike dampened investor sentiment.

The U.S. consumer-price index rose 0.3% in August, while the core reading, which excludes volatile food and energy prices, was up just 0.1%. The CPI increased 5.3% year over year, compared to a rise of 5.5% for the year in July. The markets saw an initial “relief rally” on the “little lighter than expected” read on inflation, but the latest CPI data probably won’t change the Fed’s tapering timeline.

China’s industrial output grew 5.3% in August from the same period a year ago (Vs 6.4% in July and 5.8% expected). Retail sales rose 2.5% from a year earlier, the slowest pace since August 2020. Analysts in the poll had expected them to grow 7.0% in August after rising 8.5% in July.

Asia Pacific stocks were down on Wednesday morning as investors digested weaker-than-expected Chinese data. They also await the impact of lower-than-expected U.S. inflation figures on the U.S. Federal Reserve’s timeline to begin asset tapering.

Nifty closed nominally higher on Sept 14 facing resistance from the earlier high formed about 4 days ago. At close the Nifty was up 0.14% or 24.7 points at 17380.

Nifty closed at its all time high though on an intra day basis it faced resistance from the previous high formed 4 days back. Advance decline ratio has improved to much above 1:1, bringing some positivity amongst traders. A convincing breach of 17437 could lead to acceleration in the upmove. On the other hand 17254 could act as a support.

Daily Technical View on Nifty

Nifty : Consolidation

* Nifty consolidated in the narrow range for the fifth consecutive session.

* Nifty closed with minor loss of 0.8%, to settle at 17355

* From the day’s low Nifty recovered more than 100 points, which is a good sign

* Nifty has been outperforming allmost all the asian markets

* On hurly charts, “flag” pattern is getting developed and any time soon it is likely to be taken out

* Primary trend of the Nifty has been bullish with higher tops and higher bottoms

* Nifty has been managing to hold above its 5 days EMA support

* Nifty is placed above 5, 10, 20, 50, 100 and 200 DMA, which indicates strength in the current bull run

* Recent high of 17430 is expected to act as a resistance, above which bullish momentum would pick up the pace

* Yesterday’s low of 17269 would act as a support

* Traders should trade with bullish approach in today’s session.

* Sectors like Chemical, IT, and Auto are likely to do well in today’s session

Nifty – Daily Timeframe chart

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