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Indian markets could open flat to mildly higher, in line with mixed Asian markets today and despite a higher Dow Jones index in US markets on Wednesday..…HDFC Securities

U.S. stock indexes closed mostly higher Wednesday, with the S&P 500 index sweeping to a record close but the Nasdaq Composite ended lower, in the final session of the month and first half of the year. The Dow made up more lost ground on Wednesday, helped along by a boost from shares of Boeing Co., as well as financials and consumer staples.

The three major U.S. stock indexes recorded the best first-half year performance since 2019, according to Dow Jones data. For the month, the Dow slipped 0.1%, the S&P 500 advanced 2.2% and the Nasdaq Composite tacked on 5.5%. In the year’s firsthalf, the Dow surged 12.7%, the S&P 500 14.4%, and the Nasdaq Composite 12.5%, marking the best six months of gains to start a year since 2019.

The 10-year Treasury note yield fell 3.6 basis points to 1.443%, tumbling 14.9 basis points for the month, its biggest monthly drop since March 2020.

The national home price index recorded an increase of 14.6% over the past year, representing the highest reading since in the more than 30 years of S&P CoreLogic Case-Shiller data.

A monthly report on U.S. private-sector employment that showed that 692,000 jobs were added in June (vs 555000 forecast and 978000 in May), setting the stage for the more closely followed Labor Department report on Friday. A report on pending home sales rose 8% in May compared with April, the National Association of Realtors reported Wednesday. Economists polled by MarketWatch had projected a 1% decrease for pending home sales in May.

India’s fiscal deficit for the first two months (April-May) of 2021-22 came in at Rs 1.23 lakh crore, or 8.2 percent of the full year target of Rs 15.07 lakh crore. The fiscal deficit for the same period last year had reached 58.6 percent of the full year target. The centre's net tax revenue for April-May 2021 was Rs 2.33 lakh crore, or 15 percent of the full year budget estimates, compared with just two percent for the same period last year. Due to the bumper surplus transferred by the Reserve Bank of India to the government, non-tax revenue for the first two months came in at 48 percent of the full year target, compared with 2.8 percent for the same period last year.

Led by a continuing low-base effect, the combined output of the eight core sector industries rose by 16.8 percent in May, as compared to a year ago. Core sector output had risen by a massive 60 percent in the previous month of April. The core index in May 2021 was a substantial 8% lower than the pre-COVID level of May 2019, led by all the components except natural gas.

Daily Technical View on Nifty

Nifty : Trading in Range

Nifty fell for the third consecutive session, to close at 15721 Nifty has reached very near to the crucial support derived from 20 days EMA and previous swing low at 15673 BankNifty underperformed the Nifty with a bifg margin Support for the BankNifty is seen at 34500 odd levels Nifty has been consolidating in the tight range of 5700-15900 for last 7 consecutive sessions For directional Move, Nifty has to violate this range on the either side Any level above 15900, Nifty could get bullish momentum Any level below 15700, could drag the Nifty towards 15500 odd levels Indicators and oscillators on the short term charts have been showing weakness Traders are advised to trade conservatively unless and until come out from the consolidation range of 15700-15900

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