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

U.S. stocks closed lower Wednesday, giving up earlier gains, even as investors focused on rebounding oil prices, some slippage in benchmark Treasury yields, and a brighter outlook for the economy. Investors also tuned into a second day of testimony from Federal Reserve Chairman Jerome Powell and Treasury Secretary Janet Yellen in which they reiterated expectations for a rebounding economy, but with lasting labor market challenges.

The S&P 500 index recorded its best 12-months of performance in the history of the index’s publication on Tuesday, a gain of 74.78%, following its spectacular bear-market plunge a year ago.

Oil futures gained nearly 6%, in part thanks to the cargo ship mishap in the Suez Canal, with the U.S. benchmark adding $3.42 to settle at $61.18 a barrel on the NYME. An estimated 10% of total seaborne oil trade passes through the Suez Canal, which connects the Red Sea with the Mediterranean Sea.

In U.S. economic reports, durable-goods orders slid 1.1% in February, marking the first decline in 10 months. Service-oriented businesses such as restaurants, resorts, airlines and hotels posted the steepest increase in business in almost three years, according to economic research firm IHS Markit. The firm’s “flash” service index climbed to an 80-month high of 60 from 59.8 in February. A preliminary “flash” reading of the IHS Markit eurozone composite purchasing managers index rising to 52.5 in March from 48.8 in February.

A flare up in the pandemic in the European Union is expected to compel the EU to draft emergency legislation that would allow it to control exports of COVID-19 vaccines.

Asian markets has opened largely up on Thursday after global equities dipped and U.S. investors considered which stock market sectors would most benefit from strengthening growth. Concerns about extended economic lockdowns in Europe and potential U.S. tax hikes also weighed on investor sentiment.

Indian benchmark equity indices fell the most in a month on March 24. At close the Nifty 50 index fell 1.8% to end at 14,549. The index has fallen to its lowest in nearly two months.

Nifty is close to 14468 which is the make or break level for the near term. Fall with lower volumes suggest that bottom fishers are staying away while sellers are hopeful of a bounce in the near term. On rises, 14638 could provide resistance.

Daily Technical View on Nifty

Nifty Losing Strength

Nifty plunged 1.79% to close at 14549

This is lowest close for Nifty since 26th Feb 2021

Nifty breached its 50 days EMA support on closing basis

Below 14529, Nifty will confirm lower bottom on weekly line chart

There has been PUT writing at 14500 in last few days and that can act as a trigger level for momentum selling

BankNifty plunged 2.6% and posted the lowest close since 1st Feb 2021

BankNifty and FinNifty have broken down below the consolidation which held for previous three sessions Indicators and oscillators have been showing weakness on hourly and daily chart of Nifty and BankNIfty.

Close below 14500 would confirm the down trend for medium term, which could bring more downside

Resistance for Nifty has shifted down to 14740 odd levels, while in case of BankNifty same is seen at 34360.

Asian Markets have turned weak on the charts

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