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Indian markets could open mildly higher, following positive Asian markets and higher US markets on Monday - HDFC Securities 

US stock-market benchmarks booked modest gains Monday, but enough to push the Dow Jones Industrial Average and the S&P 500 further into record territory. With the Fed still pumping over $5 billion daily into markets, and Congress passing multi trilliondollar bills with only the thought of raising offsetting revenue, there is plenty of fuel for higher prices.

Investors are keenly focused on Wednesday’s scheduled policy briefing, following the U.S. central bank’s Federal Open Market Committee’s two-day gathering. Treasury yields were lower Monday, with the rate on the 10-year Treasury note down 2.5 basis points to 1.595%, but still near its highest levels in around a year. The Empire State Manufacturing Index rose to a reading of 17.4 in March from 12.1 in the prior month.

This is the highest level of the index since last July and the ninth consecutive reading above zero, which indicates an expansion of activity. In a concrete sign that the worst of the damage from the coronavirus pandemic may be over for the airline industry, Delta Air Lines, Southwest Airlines and JetBlue Airways said leisure bookings were rising.

India's exports grew 0.67% to $27.93 billion in February while imports rose 6.96% to $40.54 billion. The trade deficit widened to $12.62 billion in February compared to $10.16 billion in the yearago period. India’s merchandise trade deficit stood at $14.54 billion in January 2021.

The major Asia-Pacific stock indexes edged higher in subdued trade on Tuesday, mirroring the price action in the U.S. markets in the overnight session. Indian benchmark equity indices fell for the second day in a row on March 15, touching a two week low in the process. At close, the Nifty was down 101.50 points or 0.68% at 14,929.50.

Nifty breached the important support of 14862 intraday on Mar 15, but closed above it. The recovery in the afternoon raises hopes of some more advance in the coming few days. Nifty could now face resistance in the 15031-15048 band, while 14862 support needs to be protected on a closing basis.

WPI inflation spikes to a 27-month high in Feb owing to costlier food, fuel: The wholesale price index (WPI)-based inflation rate rose to a 27- month high in February due to a broad-based hardening of prices of fuels, food items, and manufactured goods. WPI inflation surged to 4.17 per cent in February compared with 2.03 per cent in the previous month, the data released by the ministry of commerce and industry showed.

Daily Technical View on Nifty

Nifty Continues to remain in Choppy

Trend Nifty has been trading in choppy trend for last six consecutive weeks, where rallies are sold in to and dips are getting bought in to. Sell on rallies and buy on dips kind of strategy has been playing out in the current market scenario as far as benchmark indices like Nifty and Bank Nifty are concerned.

However primary trend of the Markets is bullish, as short term moving averages are trading above medium to long term moving averages and Nifty has been holding higher tops and higher bottoms. In last two sessions, Nifty witnessed a correction of almost 600 points from the high. On 15th March 2021, Nifty found support on 50 DMA bounced back sharply from the low.

The upward sloping trend line, adjoining the week ended lows of 27th March, 6th Nov 2020 and 5th Feb 2021, projects the strong support around 14700 odd levels, which coincides with the 50 DMA support. Recovery from this support has increased the chances of resumption of an uptrend in the Nifty. It seems that Nifty is on the verge of ending the recent consolidation and entering the bullish momentum phase again.

Metals, Real Estate, Cement and Infra are the sectors in which investors should park their money in phased manner. We expect Midcap and Small cap Indices to continue their outperformance over Nifty

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