IGI Logo

Indian markets could open mildly higher following largely positive Asian markets today and mixed US markets on Thursday.- HDFC Securities

U.S. stocks finished mostly higher Thursday, led by technology shares, after a jump in bond yields in response to inflation data on Wednesday took the market down, but the S&P 500 still looks on track for its first loss in six weeks.

The S&P 500 and Nasdaq recovered partially from two days of falls as chipmakers led gains, but losses in Walt Disney due to slowing subscriber growth in its streaming video service weighed on the Dow. Chipmakers helped push the Nasdaq into green territory in a muted Veterans Day session.

Gold was flat on Friday at ~$1862/ounce but was set for its biggest weekly jump in six months, as high U.S. consumer prices drove interest in the metal as an inflation hedge. The dollar rose on Thursday, hitting a 16-month high a day after the strongest U.S. inflation reading in more than three decades.

Shares in Asia-Pacific rose in Friday morning trade following overnight gains for tech stocks stateside as the Nasdaq Composite rebounded. Asian share prices advanced on Friday as a shock from a surprisingly strong U.S. inflation reading ebbed, with investors now hopeful that the worst price hikes could be soon over.

Nifty closed lower for the third consecutive session on Nov 11. At close Nifty was down 0.80% or 143.6 points to 17873.6.

Nifty picked pace on the downside after two days of small erosion. Negative advance decline ratio and low volumes suggest disinterest by most participants to increase their long positions. 17757 remains a crucial support level on the downside. 17971 on the upside could offer resistance.

Adani to invest $70 bn in renewable energy, produce cheapest hydrogen

Billionaire Gautam Adani said his logistics-to-energy conglomerate will invest USD 70 billion over the next decade to become the world's largest renewable energy company and produce the cheapest hydrogen on the Earth. Adani Green Energy Ltd (AGEL), the world's largest solar power developer, is targeting 45 gigawatts of renewable energy capacity by 2030 and will invest USD 20 billion to develop a 2 GW per year solar manufacturing capacity by 2022-23.

Daily Technical View on Nifty

Market: Observation

* Markets ended with decent losses on Thursday. The Nifty finally lost 143.6 points or 0.8% to close at 17,873.6. Broad market indices like the BSE Mid Cap and Small Cap indices lost less, thereby out performing the Sensex/Nifty. Market breadth was negative on the BSE/NSE.

Nifty: 15 min charts indicates consolidation

* Zooming into the 15 minute chart, we can see that the Nifty opened on a negative note and gradually slid lower during the day. A minor bounce back towards the closing helped to curb the losses.

* The 15 min chart indicates that the Nifty is trading close to the previous swing lows of 17757. Traders will therefore need to watch if the Nifty can hold above these supports in the very near term. If it does hold, then a bounce back is likely that could take the Nifty towards the 18100 levels.

Nifty: 20 day SMA still acting as a resistance

* On the daily chart, we can see that the Nifty has drifted lower in the last few sessions and is now trading just above the 50 day SMA.

* Broad market indices like the Nifty Mid Cap and Small Cap indices are outperforming as they have lost less on Thursday and trading above their 20 day SMA. While this is encouraging, one has to be cautious till we see signs of strength emerging on the Nifty. Crucial supports are now at 17775, which corresponds to the 50 day SMA.

Nifty – Daily Timeframe chart

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.hdfcsec.com/article/disclaimer-1795

SEBI Registration number is INZ000171337

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer