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

U.S. stock benchmarks closed higher Monday, following losses for all three major indexes last week, as investors weighed brightening economic prospects against worries that interest rates will climb faster than anticipated. Technology-related stocks helped lift equities higher on Monday, after a modest pullback of the 10-year Treasury yield gave the start of March’s last full week of trading a boost. The 10-year Treasury yield stood around 1.682% Monday, down from 1.729% Friday.

The Turkish lira fell as much as 15% and the BIST 100 stock market index dropped 9% after President Recep Tayyip Erdoğan’s decision to replace its central bank chief—the third change at the Central Bank of the Republic of Turkey in two years. Turkey’s central bank last week hiked interest rates by 2 percentage points to 19%, a full percentage point more than expected. Turkish sovereign bond yields soared above 18%, hitting a 22-month high. The moves in Turkey sent traders into safe-haven currencies such as the dollar and the yen, and away from currencies including the Mexican peso, the South African rand and the Russian ruble.

Federal Reserve Chair Jerome Powell said in remarks prepared for a congressional hearing on Tuesday that the U.S. recovery had progressed “more quickly than generally expected and looks to be strengthening”.

The SEBI on March 22, 2021, issued a circular giving time to mutual funds (MFs) before they will be required to treat perpetual bonds as 100-year papers for valuation. However, fund managers say they are not sure how the bond markets will see these new rules, and if there may be still some impact on prices of bonds held by debt MF schemes.

Aluminum prices hit their highest since June 2018 as investors worried Chinese efforts to reduce smelter pollution would curb output

Asian stocks were largely up on Tuesday as bond yields pulled back, easing concerns about inflation although investors are keeping a close eye on rising COVID-19 cases in Europe.

Indian benchmark equity indices were volatile on March 22 ending little changed. Nifty recovered from early morning weakness after making an intraday low at 1320 Hrs. At close the Nifty 50 index ended 8 points lower at 14,736.

Nifty has closed almost at the intraday high. A sustained breach of 14764 on the upside could result in some more upside momentum of about 100 Nifty points. Positive advance decline ratio is also encouraging.

Daily Technical View on Nifty

Nifty Trading in Choppy Trend

Nifty has been consolidating for last 6 Weeks in the Weekly closing range of 14550-15200. On 19th March, Nifty found support in Gap zone of 14336- 14469 and registered sharp recovery. On 19th March, Nifty formed Bullish Piercing Line Candlestick pattern on daily chart, indicating short term bullish reversal. This week has started with the narrow move, where Nifty has formed small inside bar on the daily chart.

Nifty is yet to form lower bottom on the weekly line charts to confirm the Downtrend. Lower top is already in place but Lower Bottom is yet to be confirmed as Nifty still maintaining its level above the previous bottom of 14529 on weekly closing basis.

Last Week, Nifty found support on upward sloping trend-line on the weekly charts, which indicates that primary uptrend is still up.

Indicators and oscillators like RSI, MACD and DMI have not been showing any sign of strength in the Index. They have been gradually weakening on the daily charts However, unless price breaks the crucial support, downward trend confirmation would not come. So, it would be advisable to turn bearish only if Nifty breaks 14500 levels.

Support for the Nifty is seen at 14500 and with that stoploss Traders should remain bullish. Resistance for the Nifty is seen in the range of 15000-15100 range.

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