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Indian markets could open higher in line with positive Asian markets today and higher US markets on Tuesday. - HDFC Securities

U.S. stocks ended higher Tuesday, with tech-related shares extending a bounce from the previous session, as investors appeared to take testimony by Federal Reserve Chairman Jerome Powell in stride as they looked for clues to the pace of future rate increases and other plans for tightening monetary policy in 2022. Major U.S. stock benchmarks ended higher after investors digested Federal Reserve Chairman Jerome Powell’s testimony before the Senate Banking Committee in a hearing on his nomination to serve a second term. Powell painted a picture of a soft landing for the economy as the Fed moves to remove emergency stimulus measures and begin raising interest rates, even as market participants increasingly expect the central bank to move much more aggressively than previously anticipated after inflation proved hotter and much more persistent than policy makers had predicted.

The yield on the US 10-year Treasury note fell 3.4 basis points to 1.745%.

China's factory-gate inflation rose more slowly than expected in December as the government took steps to contain lofty raw material prices. The producer price index (PPI) climbed 10.3% from a year earlier, the National Bureau of Statistics (NBS) said in a statement. Economists in a Reuters poll had expected the PPI index to gain 11.1% after a 12.9% rise in November. China's consumer price index (CPI) grew 1.5% year-on-year in December. Economists in a Reuters poll had expected a 1.8% uptick, after a 2.3% increase in November. Asian stocks followed a rebound in the U.S. after Federal Reserve Chair Jerome Powell reassured investors the central bank will tackle inflation to extend the economic expansion. Investors were relieved that Federal Reserve Chair Jerome Powell's testimony to Congress did not include any major surprises.

Nifty closed higher for the third consecutive session on Jan 11. At close, Nifty was up 0.29% or 52.5 points at 18055.7. Nifty has shown deceleration in the upward momentum on Jan 11 with advance decline ratio turning slightly negative. This could be an indication of the trend getting mature. However there are yet no reversal signs. 17945-18210 could be the band for the Nifty in the near term.

Daily Technical View on Nifty

Up move with range bound action..

Observation: After showing a sustainable up move on Monday, the upside momentum with range bound action was seen in the market on Tuesday and Nifty closed the day higher by 52 points amidst a consolidation. After opening on a flat note, Nifty slipped into minor weakness in the early part of the session. The upside recovery has emerged in the earlymid part and the market continued with gradual upside for better part of the session. Minor volatility with range bound action was observed in the mid part at the highs. A reasonable long candle was formed on the daily chart, which indicate a range bound action in the market with positive bias. The near term trend of Nifty remains intact and the positive chart pattern of higher highs and higher lows is active on the daily chart. Currently, the Nifty is nearing an important hurdle of around 18100-18200 levels and the muted movement in the index is likely till the hurdle is taken out on the upside. As per the current chart setup, any decline from here could be a buying opportunity. We are unlikely to see any sharp downward correction from here; at least for short term.

Conclusion: The upside with range bound action in the market is likely to continue. Having placed at the crucial overhead resistance of around 18200, there is a possibility of further volatility and range movement for the next 1-2 sessions. Eventually, the market could break above the said resistance in the near term. Immediate support is placed at 17950 levels.

Nifty – Daily Timeframe chart

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