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Indian markets could open flat following rangebound Asian markets today and despite minorly positive US markets on Monday  - HDFC Securities

Major U.S. stock benchmarks all book record closes on Monday, as investors bought materials, energy, and technology shares on apparent optimism for the outlook for the economy.Stock indexes built on gains scored Friday after the U.S. employment report showed job growth rebounded in October. Healthy quarterly results have also helped to support the market’s persistent advance, despite some lingering concerns about inflation and the Federal Reserve’s policy shifts.

The New York Fed’s Survey of Consumer Expectations for October, released Monday, showed the median expectation for inflation in the next 12 months climbed to 5.7%, the highest level since the survey’s inception in June 2013. 

World shares hit new highs on Monday as investors welcomed the passage of a U.S. infrastructure spending bill, while crude oil gained on the outlook for energy demand in an expansive global economy. In cryptocurrencies, Bitcoin jumped past $67,000 for the first time to set a new all-time high. That’s part of a broader rise in digital tokens that has taken their overall market value past $3 trillion. Ether, the native token of ethereum’s blockchain, surpassed $4,800 for the first time ever.

Asian stocks were rangebound Tuesday as traders weighed the resilience of the economic recovery to inflation risks as well as warnings about elevated asset prices.

Nifty closed higher for the second consecutive session on Nov 08 and closed above 18000 level. At close Nifty was up 0.85% or 151.7 points to 18068.5. Nifty advanced for the second straight day with higher volumes and positive advance decline ratio. A move above the 18115-18125 band could lead to more upsides while 17947-17970 is a support band for the Nifty in the near term.

Daily Technical View on Nifty

Market: Observation

* Markets ended with healthy gains on Monday. The Nifty finally gained 151.75 points or 0.85% to close at 18,068.55.

* Broad market indices like the BSE Mid Cap index gained more, thereby out performing the Sensex/Nifty. Market breadth was positive on the BSE/NSE.

Nifty: 15 min charts remain positive

* Zooming into the 15 minute chart, we can see that the Nifty opened on a weak note, but soon recovered from the lows in the morning session and proceeded to move higher. In the process, the index also crossed its previous swing highs.

* On the 15 min charts, the 20 period MA remains above the 50 period MA again confirming a positive bias. We expect the positive momentum to continue in the very near term.

Nifty: Closes above 20 day SMA

* On the daily chart, the Nifty has recently bounced back strongly from the 50 day SMA and on Monday, it closed just below the 20 day SMA.

* With the daily chart pattern looking positive and the 14 day RSI in rising mode and not yet overbought, we expect the Nifty to move above the 20 day SMA and to gradually climb higher towards its previous swing highs of 18342. Crucial supports are now at 17836.

Nifty – Daily Timeframe chart

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