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

The S&P 500 and Nasdaq Composite finished Tuesday in record territory, as shares of some big banks got a lift after announcing dividend hikes, defying concerns about high valuations and the spread of the delta variant of the coronavirus globally. Stocks edged higher, with analysts saying investors remain buoyed by optimism about the economic recovery from the COVID pandemic as consumer confidence and house prices surge.

The U.S. Conference Board on Tuesday said its consumer confidence index leapt to 127.3 this month from 120 in May, hitting its highest level since just before the pandemic took hold in March 2020. In other U.S. economic data, home prices increased 14.6% on an annual basis in April, according to the Case-Shiller Home Price Index.

China’s factory activity expanded at a slightly slower pace in June, as high raw material costs and port disruptions in the export province of Guangdong affected business activity. The official manufacturing Purchasing Manager’s Index eased to 50.9 in June from 51 in May. Activity in China’s services sector grew at a slower pace in June as COVID-19 curbs from a resurgence in cases in Southern China restrained a rebound in consumption. The official non-manufacturing Purchasing Managers’ Index (PMI) fell to 53.5 in June from 55.2 in May. The official June composite PMI, which includes both manufacturing and services activity, fell to 52.9 from May’s 54.2.

Japan's industrial output posted the biggest monthly drop in a year in May, as a sharp fall in car production threatened to undermine the country's economic recovery just weeks before Tokyo is set to host the Olympic Games. Factory output slumped 5.9% in May from the previous month, official data showed on Wednesday, hit by declines in the manufacturing of cars and production machinery to post its largest monthly drop since May last year. The contraction, which was the first drop in three months, was much weaker than a 2.4% fall forecast in a Reuters poll of economists. It followed a 2.9% gain in the previous month. Today we expect the following data concerning India - 4pm: India Fiscal Deficit in Rupees for April-May Period, 5:30pm: Eight Infrastructure Industries Index for May, India 1Q BoP Current Account Balance.

Asian stocks rose early Wednesday after U.S. shares closed at a record on economic optimism and signs that vaccines can counter a highly infectious coronavirus strain.

Indian benchmark indices ended lower for the second consecutive session on June 29. At close the Nifty was down 66.20 points or 0.42% at 15,748.50.

The Nifty fell for the second consecutive session with a negative advance decline ratio. Weak Asian markets contributed to the negative sentiments. Volumes have however not expanded on falls suggesting that a larger downmove has not begun. 15674-15792 could be the band for the Nifty in the near term.

Daily Technical View on Nifty

Nifty : Trading in Range

The market extended losses for third consecutive session with the Nifty50 falling well below 15,800 at close on June 29, dented by banking & financials, auto, and metals stocks. A small negative candle was formed on the daily chart-two back to back negative candle formation, which signal profit booking in the market from the new highs, but sharp selling was lacking in the last two sessions Nifty slipped below the initial support of 10 period EMA at 15,760 on Tuesday and closed slightly lower. Further weakness below this support could drag towards another crucial support of 20 day EMA around 15,670 levels. In the last 10 sessions, the 20 period EMA has offered support for Nifty resulting into a sharp upside bounce. The absence of sharp selling interest from the new highs in the last couple of sessions could signal a chances of halting of this decline and emergence of upside bounce in the next 1-2 sessions The broader markets, too, closed the session lower as the Nifty Midcap 100 index declined half a percent, and the Nifty Smallcap 100 slipped 0.14 percent 20 days EMA and Previous swing low on the daily charts coincides at same levels of 15673, which can act as a strong support. Trend of the Nifty would remain bullish unless in breaks 15673 on sustainable basis Asian markets are trading with bullish bias today and same can help Indian markets to recoup the losses witnessed in last 3 sessions.

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