IGI Logo

Indian markets could open sharply higher, following gains in the Asian markets over Thursday and Friday and gains in Dow on Wednesday and in Nasdaq on Thursday - HDFC Securities 

The Dow closed above 32,000 for the first time Wednesday, but technology stocks lagged, as investors bet on further gains for parts of the economy that could be bolstered by another massive injection of cash from Congress that’s due to be signed into law on Friday by President Joe Biden.

Investors were buying energy and financial stocks on Wednesday, but selling technology shares, as Congress passed a $1.9 trillion spending package slated to be signed by Biden on Friday. The OECD said this week that President Biden’s coronavirus aid package will add about one percentage point to global economic growth in 2021 and America’s growth rate was revised up to 6.5% from 3.2% An update on the federal budget on Wednesday showed a widening deficit of $311 billion in February from a year prior, a bigger gap than the expected $255 billion deficit.

A report on U.S. consumer prices calmed concerns about inflation. The U.S. consumer price index rose 0.4% in February, in line with expectations, after a 0.3% increase in January. Core CPI, which excludes the volatile food and energy components, edged up 0.1%, just shy of the 0.2% estimate, after being unchanged the prior two months.

An auction of $38 billion in benchmark 10-year Treasury notes was not as bad as feared as underlying inflation remained muted, helping push yields down to a session low of 1.506% before closing at 1.52%, compared to 1.61% earlier this week.

The RBI on Wednesday said IDBI Bank will be taken out of prompt corrective action (PCA) framework following improvement in its overall performance subject to certain conditions and continuous monitoring.

This follows a review of IDBI Bank Limited, by the Board for Financial Supervision (BFS). A gauge of global stocks rose for a third straight session on Thursday to hit its highest level in two weeks, as a dip in government bond yields helped ease inflation worries and provided a boost to stocks.

Euro zone bond yields fell after the European Central Bank said it was ready to accelerate money-printing to keep a lid on euro zone borrowing costs, using its 1.85 trillion Pandemic Emergency Purchase Program (PEPP) more generously over the coming months to stop any unwarranted rise in debt financing costs. The ECB, as expected, left its policy interest rates unchanged and said that net purchases under its asset purchase program will continue at a monthly pace of €20 billion.

Daily Technical View on Nifty

Nifty on the Verge of a Breakout

Nifty rose for the third consecutive session to close at 15174, the 5 session’s high Nifty has been forming higher low for last 4 consecutive session

Nifty is on the verge of a bullish breakout from the symmetrical triangle pattern on the daily chart SGX Nifty is suggesting a gap up opening of more than 200 points, which will be resulted in a fresh momentum breakout in the Nifty in today’s session Previous all time high is placed at 15431, which was registered on 16th Feb 2021.

This level could provide resistance to the Nifty. Support for the Nifty is shifted up to 15100 odd levels Nifty is placed above all important moving averages Indicators and oscillators have again turned bullish on short term charts Traders are advised to remain bullish with 15100 stoploss in Nifty.

Nifty IT, Metal, NBFC and Infra Sector indices are looking strong on the charts Midcap and Smallcap Indices have seen consolidation in last few sessions. They are likely to resume their primary uptrend

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