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Indian markets could open flat to mildly higher in line with mixed Asian markets today and despite a negative Dow Jones index in the US on Tuesday -  HDFC Securities

Major U.S. stock indexes closed mostly lower Tuesday, though the technology-heavy Nasdaq Composite climbed to another alltime high, as investors returned from a three-day holiday weekend unsure about the toll the delta variant of the coronavirus will take on the economic outlook.

Gold retreated over 1.9% on Tuesday and is on course for its biggest intraday drop in a month, as a buoyant dollar and higher yields took the shine off the metal. A selloff across bond markets has intensified in part due to a flood of debt sales. The 10-year U.S. Treasury yield trimmed an advance but remained above 1.36%.

Japan’s economy saw 1.9% annualized growth, higher than the initial estimate for a 1.3% rise, revised government data showed Wednesday. The revised GDP estimate was higher than economists median forecast in a Reuters poll for a 1.6% annualized growth.

Asian stocks were mixed Wednesday after a dip in U.S. shares on concern that the delta coronavirus variant is slowing the economic recovery from the pandemic. Nifty snapped a three day winning streak on Sept 07 after a volatile day in a narrow band. At close Nifty was down 0.09% or 16 points to 17362.

Nifty had a larger high-low range on Tuesday compared to the previous day. However the close was not too different. As US markets were shut on Monday, global stocks are finding it difficult to find cues and hence direction. Post resumption of US markets on Tuesday, we may see higher volatility and close on close change on Wednesday. Advance decline ratio again dipped to much below 1:1 worrying investors and dampening volumes.

Daily Technical View on Nifty

* Nifty fell the second consecutive session to close at 17362.

* This can be considered as a consolidation in overall bullish trend.

* Breadth of the market remained negative

* Nifty is still maintaining its level above its 5, 10 and 20 days EMA, which indicates bullish trend for short term.

* Hourly chart has developed RSI negative divergence on Nifty charts, which indicates the some trend weakening. However unless Nifty breaks 5 days EMA support on closing basis, trend would be considered bullish.

* Supports for the Nifty are seen at 17287 and 17212, while resistances for the same are seen at 17436 and 17511

* BankNifty has got strong support near 36200 levels.

* From the sectors Cement and Pharma Stocks look the strongest

Nifty – Daily Timeframe chart

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