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Indian markets could open mildly lower in line with largely negative Asian markets today and negative US markets on Wednesday. -  HDFC Securities

U.S. equity indexes closed lower Wednesday, but ended off the session’s worst levels, weighed down by selling in the energy, materials and information technology sectors. Investors also were digesting comments from Federal Reserve officials about when the central bank should ease monetary programs as the most severe impact of the COVID pandemic recedes.

The Federal Reserve’s Beige Book on Wednesday showed that economic growth slowed to a moderate pace in early July through August. The U.S. economy "downshifted slightly" in August as concerns grew over how the renewed surge of coronavirus cases would affect the economic recovery. In other economic data, job openings rose to a record 10.9 million in July, the Labor Department said Wednesday, marking the fifth straight all-time monthly high and exceeding forecasts for a rise of 10 million. Brazil's real currency and stocks sank more than 2% on Wednesday on heightening political tensions ahead of elections next year.

The Reserve Bank of India has freed UCO Bank from its prompt corrective action framework, intended to help weak banks revive. In a statement, the regulator said that as per UCO Bank’s FY21 results, the lender is no longer in breach of the PCA parameters. India is likely to be added to the global bond indexes by the first quarter of 2022, which would lure $40 billion of inflows to the country’s debt market in the next two years, according to Morgan Stanley.

Asian stocks declined Thursday after a dip in U.S. shares as investors continue to fret over a slowdown in the economic recovery from the pandemic. Shares in AsiaPacific also fell in Thursday morning trade as investors reacted to the release of China’s August inflation data. China’s consumer price index rose 0.8% year-on-year in August, compared to expectations for a 1% increase in a Reuters poll. Meanwhile, the producer price index jumped 9.5% from a year ago, as compared to forecasts of a 9% rise in a Reuters poll. Nifty recovered smartly from the mid-day selloff to close almost flat on Sept 08. At close the Nifty closed 0.03% or 6 points higher at 17368.

Nifty made a lower low compared to the previous two sessions but closed flat to mildly higher. This means selloffs are being bought into. Also advance decline ratio improved to much above 1:1 denoting some return of confidence by the participants. 17254-17437 could be the trading band for the Nifty over the next few sessions.

Daily Technical View on Nifty

Nifty : Consolidation

* Nifty fell marginally for the second consecutive session, to close at 17353

* For last 3 trading sessions, Nifty has remained in the narrow range

* Nifty closed in red with the loss 10 odd points

* Nifty has managed to hold its level above its 5 days EMA, placed at 17293

* Advance Decline ratio remained positive at NSE

* BankNifty outperformed the Nifty with a huge margin by rising more than 0.8%.

* Financial Nifty and BankNifty indices closed on a strong wicket and should be on radar for long trades

* Nifty has got intraday supports at 17330, 17277 and 17201

* Resistances for the Nifty are seen at 17406, 17459 and 17535

* BankNifty has got strong support at 36600 odd levels

* Traders are advised to remain long with 17200 stoploss in Nifty

Nifty – Daily Timeframe chart

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