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

U.S. stock benchmarks put in a mixed performance Thursday, with technology and other growth-oriented shares rallying, but the Dow Jones Average fell for a fourth day, after the Federal Reserve rattled the markets Wednesday by raising its forecast for inflation and signaling that it could lift benchmark interest rates sooner than had been expected. Big technology stocks made a comeback Thursday, pushing the Nasdaq to near a record close, as longer-term Treasury yields plunged, while commodity prices fell as the U.S. dollar strengthened, dragging down some of the Dow’s key components like Dow, Chevron and Caterpillar.

Meanwhile, first-time claims for unemployment benefits rose 37,000 to 412,000 in the week ended June 12 — the highest level in a month. The prices of commodities were falling sharply on Thursday, cutting into months of gains and weighing on equity markets, as China takes steps to cool off rising prices and the U.S. dollar strengthens.

Gold suffered its biggest one-day percentage drop of the year on Thursday as a hawkish turn by the Federal Reserve lifted the U.S. dollar, sending prices for bullion to their lowest settlement in nearly seven weeks. August delivery, gold fell $86.60, or nearly 4.7%, to settle at $1,774.80 an ounce. Oil prices toppled from their highest levels in years on Thursday, pressured by the dollar's gains. The stronger dollar makes greenback-traded commodities more expensive to holders of other currencies. Brent retreated 1.7% to $73.10 a barrel by 4:26 p.m. EDT (2026 GMT), while U.S. crude fell 1.64% to $70.76

Asian markets witnessed a mixed opening on cues from Wall Street where technology stocks rallied in an otherwise lacklustre scenario since the FOMC guidance on inflation and key rates.

Indian benchmark equity indices ended lower for the second consecutive day on June 17 following weak global cues caused by the US Fed which signaled higher rates in 2023 in its policy outcome on Wednesday. At close, the Nifty was down 76.10 points or 0.48% at 15691.40. Indian rupee slipped to six-week low on June 17 and was down 76 paise, at 74.08 per dollar.

Nifty fell due to the global event, but contained its losses. Even the Asian markets clawed back post weak openings. However, the advance decline ratio in India remains severely negative for the second consecutive session. Nifty may fall some more to take support around 15567 and then correct upwards. On rises 15750 may be difficult to breach in the near term. The fact that the big Fed announcement has passed by without any large damage to global indices means that there may not be a sharp downmove immediately and global markets may go back to their original trend soon; though the momentum on the upside may be weak till a fresh positive trigger emerges on the horizon.

Daily Technical View on Nifty

Nifty : Time to Be Cautious

Nifty fell for the second consecutive session to settle at 15691. Nifty breached the support of 10 days EMA on closing basis 20 days SMA support for the Nifty is currently placed at 15577, which coincides with the previous swing low support of 15566. So holding above 15566 in Nifty could help bulls to maintain uptrend

Any level below 15566 would result in to momentum selling and could drag Nifty below 15000 in short span of time Immediate Resistance for Nifty is shifted down to 15770.

BankNifty has got support at 34374, below which it would see fresh sell off. Resistances for the same are seen at 34882 and 35380 By breaking below previous swing trough, RSI oscillator has given sell signal on the daily chart. Daily MACD has also crossed its signal line on the down side, which indicates weakness in the market

Traders are advise remain cautious at this level as breaking of support in Nifty could end up in healthy correction Unless We see Nifty closing above 16770, aggressive longs are not advisable From the sectors FMCG and IT looks the strongest for the day

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