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

The Dow Jones Industrial Average ended sharply higher Thursday, while the S&P 500 and Nasdaq Composite finished in record territory, after President Joe Biden said he had reached a deal with a bipartisan group of lawmakers on an infrastructure plan. Investors liked what they saw, and stocks moved higher on the news, although the main benefit will come, if the full House and Senate are able to get it across the finish line and the president can sign it into law.

First-time U.S. unemployment benefit applications disappointed. Initial claims fell 7,000 to 411,000 in the week ended June 19. Economists had looked for a fall to 380,000.

Shares of Accenture PLC rose 2.1%, after the management consulting company on Thursday reported fiscal third-quarter profit and revenue that beat expectations. Accenture also raised its full-year outlook, citing demand for digital transformation. This led to IT stocks in India rising across the board on June 24.

The US Federal Reserve on Thursday announced that temporary limits on dividend payments and share buybacks on the nation’s largest banks can end after June 30, after the results of the latest stress test showed the firms have enough capital to withstand a severe global recession.

The Bank of England kept its monetary policy unchanged, but vowed to monitor rising inflation as the U.K. economy emerges from its Covid-induced slump. The Bank noted that “developments in global GDP growth have been somewhat stronger than anticipated” since its last report in May. It added that global price pressures have picked up further. Looking ahead, it stated that the committee expects the economy to experience a temporary period of strong GDP growth and abovetarget inflation, “after which growth and inflation will fall back.”

In the June 17-24 poll, over 60% of fixed-income strategists, or 25 of 41, said a significant sell-off in global bond markets was likely over the next three months.

Asian stocks rose Friday after U.S. shares hit a record on a bipartisan $579 billion U.S. infrastructure deal that stoked economic optimism.

Indian benchmark equity indices rose on June 24 on the monthly F&O expiry day led by buying in IT stocks. At close, the Nifty jumped 103.50 points or 0.66% at 15790.50.

Nifty made a small high low range compared to the previous day, indicating indecision at higher levels. The next move could be either side and even go sideways. Lack of volume pickup will postpone trend picking by the markets. Sectorally IT is back in favour and could remain in limelight for 1-2 sessions more before some other sector comes into limelight. Nifty could remain in the 15700-15863 for the next few sessions.

Daily Technical View on Nifty

Nifty : Trading in Range

Yesterday, Nifty formed the inside bar by remaining in the range of the previous day. After 40 points gap up, Nifty continued to extend the gains throughout the day Nifty Managed to hold above the crucial support of the previous day’s low placed at 15673. However, Nifty has still got a big hurdle at 15900 odd levels, where all time high is palced Advance Decline ratio was at 2:3 in NSE Indicators and Oscillators have been holding bearish setup on the daily charts However, on hourly charts indicators and oscillators have turned bullish In this scenario, confirmation of resumption of an uptrend would only come if Nifty surpasses the resistance 15900 on sustainable basis Close below 15600 would violated the crucial support of 20 days EMA.. So unless, we see Nifty breaking the range of 15600-15900 on the either side, view on markets would remain neutral. In this scenario, stock specific bullish bets can be taken on trading side From the sectors, IT index looks the strongest.

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