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Indian markets could open flat to mildly higher, in line with largely positive Asian markets today and despite a higher Dow Jones index in US markets on Thursday..…HDFC Securities

U.S. stocks closed higher Thursday, with the S&P 500 index extending its drive into record territory for a 6th day in a row, helped by supportive economic data and energy stocks getting a boost from $75-a-barrel oil. The S&P 500 swept to a sixth straight record close on Thursday, led by cyclical stocks including energy, financials and industrials, but with growth stocks ending the session lower.

The Democratic-controlled U.S. House of Representatives approved a $715 billion surface transportation and water infrastructure bill on Thursday in what Democrats see as an early step toward sweeping infrastructure legislation that Congress hopes to complete in September.

U.S. automakers on Thursday reported a sharp rise in quarterly sales on strong demand for SUVs and pointed to the trend continuing into 2022, as more people shift to private conveyance and new electric vehicles (EVs) line up for launch

The International Monetary Fund raised its 2021 U.S. growth projection sharply to 7.0% (from 4.6% in April) due to a strong recovery from the COVID-19 pandemic and an assumption that much of President Joe Biden's infrastructure and social spending plans will be enacted.

The U.S. oil benchmark closed up 2.4% ending at $75.23 a barrel after a decision was delayed by OPEC+ on whether to further boost production beginning next month. They were expected to agree to lift output by around 500,000 barrels a day beginning in August. The standoff between the United Arab Emirates and the rest of the cartel could ultimately mean that OPEC+ won’t increase production at all.

The World Health Organization said a 10-week decline in new COVID cases in Europe has come to an end, with cases up 10% last week due to relaxed restrictions and increased travel.

The U.S. budget deficit will hit $3 trillion for the fiscal year 2021, according to an estimate from the nonpartisan Congressional Budget Office. The gap would be 13.4% of GDP, the CBO said, the second-largest since 1945, reflecting the fiscal stimulus provided by Congress to support the economy’s recovery from the pandemic.

The first-time jobless claims fell to 364,000 last week from 411,000 the previous week, the Labor Department said. Economists had forecast a decline to 380,000.

Daily Technical View on Nifty

Continuation of choppy trend..

Observation: The choppy trade with weak bias continued in the Nifty for the fourth consecutive sessions on Thursday and the market closed the day lower by 41 points. After opening on an upside gap of 34 points, Nifty slipped into weakness in the early part of the session. It later shifted into a range bound action that continued for the whole session. The opening upside gap has been filled completely. A reasonable negative candle was formed, that placed at the crucial support of 20 day EMA on the daily chart around 15680 levels. We also observe a formation overlapping negative candles over the last three sessions, which indicate range bound action and sell on rise opportunity in the market. Normally, formation of such patterns could eventually result in an upside breakout. As of now, there is no early sign of any upside bounce from the lows. The market decline of the last four sessions could signal a lack of strength in the selling momentum from new highs, compared to sharp selling of the past. This could be a sign of relief for the bulls to sustain the highs. Normally, such lack of strength could hint at the possibility of a sharp upside bounce from the lows, post confirmation.

Conclusion: Nifty continued to show choppy movement with negative bias and still there is no evidence of any upside bounce emerging from the lows. Nifty is currently placed at the important cluster support of 15650 levels and a move below this area could result in slide down to 15500 levels.

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