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Indian markets could open lower following largely negative Asian markets today and negative US markets on Tuesday. - HDFC Securities

U.S. stock indexes ended lower Tuesday, with the Nasdaq Composite and S&P 500 snapping long win streaks as market benchmarks retreated from record highs. Investors parsed a report on U.S. wholesale inflation and news that industrial conglomerate General Electric was planning on splitting into three separate companies.

In U.S. economic data, the October producer-price index rose 0.6%, in line with expectations, with the pace of wholesale inflation over the past 12 months flat at 8.6%. That is the highest level since the index was reconfigured in 2009, and likely one of the highest readings since the early 1980s. The National Federation of Independent Business said its gauge of small-business confidence slipped by 0.8 points to 98.2 last month, its lowest reading since March.

China’s consumer inflation for October came in roughly in line with expectations, according to official data released Wednesday. The consumer price index for October rose 1.5% from last year, against expectations in a Reuters poll for a 1.4% increase. Producer prices, however, rose more than expected. The producer price index for October surged 13.5% from last year, above expectations in a Reuters poll for a 12.4% gain. China's October factory gate prices rose at the fastest pace since 1995

China Evergrande Group is facing its biggest payment test since signs of a liquidity crisis emerged at the firm five months ago. Investors are waiting to see if the embattled developer makes coupon payments totaling $148.1 million for three dollar bonds before the end of 30-day grace periods Wednesday. Traders await CPI data from the US this evening. The consumer price index is expected to have risen nearly 6% in October, the most in three decades. Asian stock markets were down on Wednesday as surges in oil and Chinese factory prices added to worries that a hot U.S. inflation reading could renew pressure on policymakers to lift interest rates.

Nifty ended almost flat on Nov 09 after muted moves. At close the Nifty was down 0.13% or 24.3 points to 18044.2. Nifty ended the day almost flat in line with most other markets. Nifty crossed the high of the previous day but there was no follow through upmove. A move above 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 modest losses on Tuesday. The Nifty finally lost 24.3 points or 0.13% to close at 18,044.25.

* Broad market indices like the BSE Mid Cap and Small Cap indices 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 positive note, but soon witnessed selling pressure and gradually came down.

* On the 15 min charts, the 20 period MA remains above the 50 period MA again confirming a positive bias. Global cues are however indicating a weak opening. So we could open lower and trade in a range for 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 is now hovering just below the 20 day SMA.

* Broad market indices like the Nifty Mid Cap and Small Cap indices have however crossed their 20 day MA indicating a positive bias. We therefore believe it is only a matter of time before the Nifty index recovers and moves above the 20 day SMA as it resumes its intermediate uptrend. Crucial supports are now at 17983.

Nifty – Daily Timeframe chart

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