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Indian markets could open flat to mildly higher, despite mixed Asian markets today and positive US markets on Wednesday - HDFC Securities

U.S. stock indexes finished on higher ground Wednesday, helped by surging energy stocks and positive economic data, even as investors remain fixated on next week’s Federal Reserve meeting. Uncertainties have grown about the central bank’s monetary-policy plans, but also around how President Joe Biden’s $3.5 trillion budget bill fight in Washington will shake out for Wall Street.

In economic data, the New York Fed’s Empire State business conditions index surged 16 points to 34.3 in September, the regional Fed bank said Wednesday. Economists had expected a reading of 17.2.

Oil futures finished higher, with the U.S. benchmark rising 3.1% to settle at $72.61 a barrel on a U.S. report showing a bigger-than-expected decline in crude stockpiles, signaling a tightening market. October natural gas climbed 3.8% to settle at $5.46 per million British thermal units. Gold futures fell, with December gold down$12.30, or 0.7%, to settle at $1,794.80 an ounce.

The Union Cabinet of India on September 15 cleared Rs 25,938 crore performance-linked incentive (PLI) scheme for the automobile sector to boost the production of electric and hydrogen fuel cell vehicles.

Government plans to sell 10% of Hindustan Copper’s equity through an Offer for Sale. The initial plan is for the sale of 4.83 crore shares or 5% of the total equity with a green shoe option to sell another 4.83 crore shares or 5% of the total equity. The floor price of Rs 116 per share is at a 6.82% discount to Wednesday's closing price.

Japanese trade data released earlier in the day showed that exports grew 26.2% year-on-year and imports grew 44.7% year-on-year in August. The trade balance was at a deficit of JPY635.4 billion ($5.8 billion). Australia jobs data released earlier in the day showed that the employment change contracted by 146,300, while the full employment change contracted by 68,000, in August. The unemployment rate was 4.5%.

Asian stocks were mixed early Thursday amid a climb in energy shares and as some of the anxiety about the recovery from the pandemic eased.

Nifty closed at record highs on Sept 15 aided by broad upmove across sectors. Cabinet approval for Production Linked Incentives (PLI) for Auto sector and relief measures for Telecom sector aided the rise. At close, the Nifty was up 0.79% or 137.3 points at 17517.4. India was the best performer in the Asian region.

Advance decline ratio on Sept 15 was sharply in the positive and volumes were higher than the recent average. Nifty shows strength in new territory. The upmove on Sept 15 could have postponed the start of correction by a couple of days. 17630 is the next target for the Nifty while 17358 could be a support.

Daily Technical View on Nifty

Nifty : Breakout From Consolidation

* Nifty finally broke out from the narrow range, which held for previous 6 trading sessions

* Nifty has surpassed the crucial resistance of 17500 on closing basis

* Fresh All time high of 17532 was registered in yesterday’s trade

* Previous resistance of 17438 is likely to interchange its role as a support now 

* Traders can remain long with 17438 stoploss

* Resistance for the Nifty is seen in the range of 17600-17650

* On an hourly chart, setup is bullish with indicators and oscillators are showing strength

* From the sectors Auto, Metals, Banks, Energy and PSE are looking strongest 

* BankNifty has registered breakout from the Pennant pattern on the daily chart

* NSE PSU Bank Index has registered bullish “Inverted Head and shoulder” pattern on the daily charts

* IT and PSE indices are in continuation of an uptrend.

Nifty – Daily Timeframe chart

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