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Indian markets could open mildly higher, in line with positive Asian markets today and higher US markets on Thursday - HDFC Securities

U.S. stock benchmarks rose on Thursday for a third straight day, as lawmakers neared an agreement that would avert a debt-ceiling breach for at least two months. Some investors attributed the market’s bullish complexion to optimism around job creation ahead of a closely watched labor-market report on Monday, which could influence markets for weeks to come.

On Wall Street, anticipation for Friday’s September jobs number grew as economists now expect that 500,000 new jobs were created for the month, an amount that would more than double the 235,000 job gain of August.

Russian President Vladimir Putin’s offer of help to “stabilize” the natural-gas market in Europe—where prices have surged around 500% this year—has calmed worries of an energy crisis in the region and helped cool commodity prices.

Fitch Ratings has cut India's economic growth forecast to 8.7 percent for the current fiscal (from 10% in June) but raised GDP growth projection for FY23 to 10 per cent, saying the second COVID-19 wave delayed rather than derail the economic recovery.

India’s central bank is to announce its monetary policy decision on Friday. The MPC is likely to remain on a pause mode on Friday as it awaits more cues from the growthinflation front. The general consensus among economists is that the stance will remain ‘accommodative’.

Activity in China’s services sector returned to growth in September as a major COVID-19 outbreak in the eastern province of Jiangsu receded. The Caixin/Markit services Purchasing Managers’ Index (PMI) rose to 53.4 from 46.7 in August. Caixin’s September composite PMI, which includes both manufacturing and services activity, rose to 51.4 in September from 47.2 the previous month.

Asian shares rose on Friday as Chinese shares returned from a one week holiday upbeat, tracking a global rally, while investors also eyed key U.S. jobs data for any fresh insight into the timing of Federal Reserve tapering.

Nifty rebounded on Oct 07 after the sell-off seen on the previous day. At close, Nifty was up 0.82% or 144.3 points at 17790.

Nifty formed a doji on Oct 07 which is appearing within the high low range of the previous day. Hence this pattern does not have any predictive ability. A breach of Thursday’s high i.e.17858 could lead to further upward move in the markets. 17641 happens to be the support for the Nifty in the near term.

Daily Technical View on Nifty

Nifty : Inside day​​​​​​​

* Nifty opened with a gap up today and the gap remain unfilled through the day. Index ended the session with the gain of 0.82% to close at 17790.35

* Despite global market weakness, Nifty negated the bearish sentiment and closed higher.

* Nifty sustains above well 17600, hence bullish island reversal formed on 4th October 2021 still intact.

* 128 stocks made new 52 week high and only 3 made new 52 week low which indicates market sentiment is still bullish.

* The broader market outperformed in today's trading session as Midcap rose 1.88% and Small cap closed 1.22% higher

* RSI taking support of 60 level on the daily chart suggest index could move higher.

* On the sectoral front, except Nifty Oil & Gas (-2.77%), all the sectoral indices closed in the green. Nifty Auto (+4.39%), Realty (+6.16%), and IT (+1.79%) gained the most

Nifty – Daily Timeframe chart

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