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Indian markets could open flat to mildly higher, in line with mildly positive Asian markets today and mildly higher US markets on Monday..…HDFC Securities

U.S. stock benchmarks closed at back-to-back records Monday, as investors await earnings this week from corporate heavyweights, including from Big Tech, and a Federal Reserve policy meeting.

The pipeline of earnings could set the tone, analysts said, but investors also will be focused on China and the U.S. as tensions rise between the world’s top two economies. Investors waited to hear from the C-suites of Big Tech companies about their expectations for the rest of 2021.

U.S. new home sales fell 6.6% in June to an annual rate of 676,000, the lowest since the first month of the COVID-19 pandemic in early 2020, as high prices and a limited selection appeared to frustrate would-be buyers.

In the United States, investors will closely parse comments by Federal Reserve Chair Jerome Powell on Wednesday after a twoday policy meeting for clues on how the central bank will start tapering its asset purchases, its assessment of inflation risks, and the future of interest rates.

Shares in Asia-Pacific edged higher in Tuesday morning trade after touching year to date lows the day before, with traders keeping at least half an eye on the United States where major companies report earnings and the Federal Reserve meets on policy this week.

Profits at China’s industrial firms rose 20% in June from a year earlier to 791.8 billion yuan ($122.27 billion), official data showed on Tuesday. Profit growth slowed from the 36.4% increase seen in May, according to the National Bureau of Statistics.

Profits at China’s industrial firms rose 20% in June from a year earlier to 791.8 billion yuan ($122.27 billion), official data showed on Tuesday. Profit growth slowed from the 36.4% increase seen in May, according to the National Bureau of Statistics.

Nifty continues to face resistance at ~15900. Although the Nifty is showing strength, the weakness in other markets, if it continues, can impact the Nifty and we could see some more downside in coming sessions. 15899-15768 could be the trading band for the Nifty in the near term.

Daily Technical View on Nifty

Range bound action..

Observation: The choppy movement continued in the market for the second session on Monday and Nifty closed the day lower by 31 points.

After opening on a weak note, the market made an attempt to move up from the lows in the early-mid part of the session. It failed to surpass the immediate resistance of 15900 levels and showed weakness amidst a range movement for the remaining part of the session.

A small negative candle was formed on the daily chart with minor upper and lower shadow. Technically, this pattern indicate a lackluster type movement in the market. This action signal chances of some more such range movement in the short term.

After the formation of doji type candle pattern on Friday at the immediate resistance of 15900 levels, the formation of choppy movement on Monday signal lack of sharp selling or any reversal type formation on the daily chart. This is good sign for bulls and further such range movements could eventually open upside breakout of the hurdle.

Nifty on the weekly chart continued with broader range movement. The formation of long lower shadow in the last two weekly candles signal emergence of buying enthusiasm at the lows.

This could be an early indication of further upside potential in the market before showing any sharp down trend.

Conclusion: The short term trend of Nifty is choppy and similar movement could be expected for the next session.

The high low range to be watched around 15900-15760 for the next 1-2 sessions. A sustainable move above 15900 could open further upside towards 16000-16100 in a short period of time.

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