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Indian markets could open flat to mildly higher, in line with mildly higher Asian markets today and despite sharply negative US markets on Monday..…

U.S. stocks tumbled Monday, but finished well above session lows, as investors parsed the potential impact of a reeling property developer in China and traders positioned ahead of a two-day meeting of Federal Reserve policy makers that begins Tuesday. U.S. stocks closed lower Monday, but retraced significant earlier losses in the final hour of trade.

A downturn in China’s property market, which suffered heavy losses Monday with shares of China Evergrande falling 13% in Hong Kong, were blamed for dragging down U.S. and global equities. Markets were closed in mainland China for a holiday, but the Hang Seng dropped over 3%.

The discord in Washington, including over President Joe Biden’s planned $3.5 trillion spending plan could mean “volatility is here for now.”

Shares in Asia-Pacific recovered from lows in Tuesday morning trade as investors continue to monitor the situation surrounding embattled developer China Evergrande Group.

Nifty closed lower for the second consecutive session on Sept 20 due to concerns over troubles at Evergrande China likely to impact the global risk appetite. At close, the Nifty was down 1889 points or 1.07% to 17397.

Nifty has fallen sharply on Sept 20, raising fears of the beginning of an intermediate correction. 17303 is the next support for the Nifty, while the 17444-17533 band could provide resistance on upmoves.

Carlyle to sell 3.4% stake in SBI Cards for US$ 443mn: Private equity firm Carlyle Group will nearly halve its stake in SBI Cards and Payment Services for around Rs 3,267 crore, according to deal terms. CA Rover Holdings, a Carlyle entity, which as of Jun, 2021 held a 6.5% stake in the credit card issuer, will sell around 32 million shares, or a 3.4% stake in the company, through a block trade.

Daily Technical View on Nifty

Nifty : Consolidation

* On 17th Sep 2021, Nifty registered fresh all time high at 17792 and reversed south. Nifty fell almost 2.5% from the recent top and closed on a weak wicket.

* Nifty violated the short term support of its 5 days EMA but still maintaining its level above 10 and 20 days EMA supports.

• Higher tops and higher bottoms are also well intact on the short term charts.

* RSI on the daily chart has exited the overbought zone and crossed the signal line on the down side but there is no sign of negative divergence is seen as of yet on the benchmark indices like Nifty and BankNifty.

* Previous swing low support is placed at 17254, which can act as an immediate support for the Nifty. RSI getting in to the overbought zone is not the sign of trend reversal.

* In the current market condition, we expect IT and FMCG sector to outperform, while sectors like Pharma and Metal may still remain under pressure.

* Most of the Derivative stock closed on a weak wicket and they are expected to extend the correction in the coming sessions.

* Considering the technical evidences discussed above, we expect the ongoing correction to extend towards 17250 and 17000 levels.

Nifty – Daily Timeframe chart

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