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Indian markets could open flat to mildly higher, in line with largely positive Asian markets today and mildly positive US markets on Thursday -  HDFC Securities

The S&P 500 index and the Nasdaq Composite ended at fresh records Thursday, after data showed weekly jobless benefit claims improved slightly ahead of Friday’s August employment report. Weekly initial jobless benefit claims dropped by 14,000 to 340,000 – a pandemic low - in the week ended Aug. 28.

In economic data, U.S. factory orders rose 0.4% in July, as manufacturers worked to pump out more goods to keep up with high demand. Economists surveyed by the Wall Street Journal had forecast a 0.3% increase. U.S. productivity also rose at a revised 2.1% annual pace in the second quarter, a bit lower than the government’s previously reported 2.3% rise from April to June, while a new report showed the U.S. international trade deficit falling from a record high, notching a decline of 4.3% in July to $70.1 billion.

Investors have their eyes on jobs report that comes out Friday from the Bureau of Labor Statistics. Economists are expecting the U.S. to have added 720,000 jobs in August. Owing to an uptick in global orders, India's merchandise exports shot up in August, rising by a major 45.17 percent as compared to August, 2020. Impressively, exports also rose by 27.5 percent as compared to August, 2019, before the pandemic struck. In August, imports saw an equally large rise, going up by 51.5 percent to $47 billion. The trade deficit in August widened to USD 13.87 billion vs USD 8.2 billion, a year ago.

Asian stocks rose Friday and the dollar held a drop after cyclicals led Wall Street to a record high ahead of a U.S. jobs report that will shape views on the outlook for Federal Reserve monetary policy. Activity in China’s services sector slumped into sharp contraction in August, as restrictions to curb the COVID-19 Delta variant threatened to derail the recovery in the world’s second-biggest economy. The Caixin/Markit services Purchasing Managers’ Index (PMI) fell to 46.7 in August from 54.9 in July, plunging to the lowest level since the pandemic’s first wave in April 2020.

Data To Watch 10:30am: Markit India PMI Services for August, prior 45.4 10:30am: Markit India PMI Composite for August, prior 49.2. Nifty reversed the losses of the previous day and closed at another record high on Sept 02. At close Nifty was up 157.9 points or 0.92% at 17234.

Nifty reversed the losses of the previous day and nullified the bearish signal. Advance decline ratio has improved to much above 1:1. FPIs seem to be in a mood to keep buying Indian stocks. The Nifty keeps breaching resistances one after the other in fresh territory. Nifty could now stay in the 17340-17154 band for the next 1-2 sessions.

Daily Technical View on Nifty

Nifty : Bullish Trend Continues

* After one days of pause, Nifty resumed its uptrend and hit fresh all time high at 17245

* Nifty gained 0.92% and closed at 17234

* Bullish Trend of the Nifty is well intact

* Nifty is placed above all important moving averages

* Nifty has been forming higher tops and higher bottoms

* BankNifty ended the session with the gain of 0.70%.

* ADX setup on Nifty and BankNifty daily charts indicates that there is more upside room left for the bulls and the rally could continue.

* There is a strong support at 36200-36300 range in BankNifty.

* For Nifty 17179 and17114 are the intraday support levels to watch out for

* Intraday resistances for Nifty are placed at 17299 and 17365.

Nifty – Daily Timeframe chart

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