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Indian markets could open flat to mildly higher, in line with largely positive moves in Asian markets today and strong Nasdaq index in the US markets on Thursday..…HDFC Securities

U.S. stock benchmarks closed up across the board on Thursday, with the S&P 500 logging a record finish, after investors discounted the latest evidence of accelerating inflation.

The climb in stocks and a fall in U.S. bond yields implied that investors agree with the Federal Reserve’s argument that the jump in prices is transitory and is caused by the short-term impact of demand exceeding supply as the economy recovers from the coronavirus pandemic.

The consumer-price index jumped 0.6% last month to mark the fourth increase in a row, the government said Thursday. Economists polled by Dow Jones and The Wall Street Journal had forecast a 0.5% advance. The rate of inflation over the past year escalated a 13-year high of 5% from 4.2% in the prior month and 4.7% forecast.

The U.S. federal budget deficit has widened to a record $2.1 trillion in the first eight months of the fiscal year. The Treasury Department said Thursday that this is up from a $1.9 trillion deficit over the same period last year

A separate report on U.S. weekly initial jobless claims showed first-time claims for unemployment benefits fell 9,000 to 376,000 in the week ended June 5, the Labor Department said Thursday, marking the lowest level of claims since March 2020.

The ECB said it would buy bonds at a "significantly higher" pace than earlier this year, reaffirming its March pledge as most central bank watchers had expected. The central bank now sees 2021 euro zone economic growth at 4.6%, above the 4% projected in March. Inflation projections were also raised, with the ECB expecting price growth at 1.9% this year, in line with its target and above its last projection for 1.2%. It avoided any taper talk and any harm to the still tentative economic recovery or allow bond yields to surge prematurely.

May received the second highest rainfall in 121 years, the India Meteorological Department (IMD) said in its monthly report Thursday, attributing two back-to-back cyclones and western disturbances for the record precipitation. It also said that at 34.18 degrees Celsius, the average maximum temperature over India this May was the fourth lowest since 1901.

Asian stocks were steady early Friday after U.S. shares and Treasuries rallied as investors judged that a jump in inflation is likely to be transitory, leaving scope for ongoing central-bank support.

Indian benchmark equity indices bounced up on June 10 after a down previous day. At close, the Nifty was up 102.40 points or 0.65% at 15,737.80.

Nifty tried to claw back the lost ground with most action concentrated in non index stocks. Lower volumes in the market and sharply higher advance decline ratio suggest that institutional activity has reduced while the non institutional players have increased their bets based on the recent gains in the broader markets seen. Lack of supply across the markets even at higher prices is emboldening the traders. Nifty could now edge up towards the recent high of 15800 while 15622 could offer support.

Daily Technical View on Nifty

Nifty : Nifty Resumes an Uptrend

Nifty found support on its 10 days EMA during the session of 9 th June At present, 10 days EMA support is placed at 15601 for Nifty Resistance would continue to be at 15800, which happens to be the recent swing high Supports for the Nifty are seen at 15601 and 15566 Prevailing levels of Nifty are still above their 10 and 20 days EMA, which indicates the overall uptrend. 14 Days RSI has exited the overbought zone with negative crossover on its signal line. However there was no negative divergence observed yet. Nifty FMCG, IT, Pharma, Media and Realty closed on a strong wicket Nifty Midcap and Smallcap Indices have closed at fresh all time high close We expect stock and sector specific bullish move in the Markets. Above 15800, Nifty could move up to 16000 Target. Traders should utilize dips to accumulate long positions with appropriate stoploss.

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