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Indian markets could open higher, in line with positive Asian markets today and despite flat negative US markets on Wednesday- HDFC Securities

U.S. stocks closed lower Wednesday after the Federal Reserve opted to keep rates near zero, as expected, and monetary policy loose at the conclusion of its two-day policy meeting.

Investors also geared up for President Joe Biden to unveil a new $1.8 trillion package of spending and tax cuts Wednesday evening that aims to bolster children and families.

US Fed officials said the U.S. economy and employment picture have “strengthened” and that inflation has climbed, but called the increase “transitory.” The central bank held a key short-term interest rate near zero and maintained monthly purchases of $120 billion in Treasury and mortgage-backed bonds. Though Wednesday’s comments were largely anticipated, investor fears that strong U.S. economic data would force the Fed to taper its debt purchases sooner than expected helped push Treasury yields up dramatically in the first quarter.

U.S. trade deficit in goods rose in March for a third straight month, hitting another record high. The advanced trade gap in goods climbed 4% to $90.6 billion in March.

President Joe Biden made his first address to a joint session of Congress on Thursday night. He pressed his so-far popular agenda, which includes a $2 trillion infrastructure plan and a newly unveiled, $1.8 trillion plan for families, children and students.

The White House’s new $1.8 trillion spending package — just one part of a sweeping, $4 trillion-plus economy-boosting plan — would hike the top income tax rate to 39.6% for the wealthiest Americans and close a series of tax loopholes, among other provisions.

Rating agency ICRA on April 28 revised down its forecast for India's GDP to grow by 10 to 10.5 percent in 2021-22 from the earlier projection of 10-11 percent, in the wake of the localised restrictions imposed by various state governments owing to the COVID-19 second wave.

Stocks in Asia-Pacific mostly rose in Thursday morning trade, as investors react to the U.S. Federal Reserve’s decision to keep its easy money policy in place.

Indian benchmark equity indices ended higher for the third straight session on April 28. At close, the Nifty was up 211.50 points or 1.44% at 14864.50. Nifty gained the most since March 30.

Nifty filled two downgaps on two consecutive days, showing the strength of the upmove. On April 28, it rose with an upgap. 14890-14984 is the next resistance band. The strong advance decline ratio (though softer than the previous day) denotes active interest of traders in the broader markets. On falls 14667-14698 could offer support

Daily Technical View on Nifty

Observation:

After showing a sign of strength with upside momentum on Tuesday, Nifty demonstrated another sharp upmove on Wednesday and closed the day higher by 211 points. After opening with upside gap of 57 points, Nifty shifted into a sustained upmove, that continued for the entire session. Intraday consolidation or minor dips in between have been used as buy on dips opportunity for the day. The opening upside gap remains unfilled

A long bull candle was formed, that closed at the edge of crucial overhead resistance at 14900 levels (resistance as per change in polarity and previous swing highs). Though, Nifty placed at the key hurdle, there was no sign of profit booking from near the resistance on Wednesday. This is a positive indication and signal more upside in the short term

After the false downside breakout of the lower range of 14200 levels on 22nd April, Nifty displayed strength on the upside and has almost reached the upper trajectory of the range pattern at 14900 levels. Hence, a sustainable move above this hurdle could open the next upside target of around 15200-15300 levels in the near term.

Nifty has bounced back as per weekly timeframe chart and formed a long bull candle so far. After the formation of doji candles in the previous three weeks during decline, one may now expect a formation of long bull candle as per weekly timeframe chart, by week's close

Conclusion: The short term trend of Nifty continues to be positive. After the display of strength to move above the hurdle, one may expect present upside resistance (14900) to be broken decisively on the upside in the short term.

Any intraday consolidation or minor weakness from near the hurdle could be a buy on dips opportunity. Immediate support is placed at 14750.

Nifty – Daily Timeframe chart

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