IGI Logo

Indian markets could open flat to mildly lower in line with largely negative Asian markets today and despite negative Dow Jones index in US markets on Monday - HDFC Securities

The tech-heavy Nasdaq Composite Index eked out a slight gain in the final minutes of trading on Monday, after bearing the brunt of a broader stock selloff earlier in the day (down 2.7% at one point), while the S&P 500 and Dow industrials extended their losing streaks, with worries about Federal Reserve policy reverberating in financial markets. Three Wall Street firms — Goldman Sachs Group Inc., JPMorgan Chase & Co., and Deutsche Bank AG — said they see the Fed delivering more than the three rate hikes that policy makers have penciled in for this year.

US traders also braced for a consumer-price report on Wednesday that could show a 7% headline year-over-year rise for December, a level which may not let up until the March reading. The yield on the 10-year US Treasury note rose 1 basis point to 1.78%, the highest since Jan. 17, 2020.

Net inflows into equity and equity-linked schemes in India more than doubled over the preceding month to Rs 25,076.7 crore in December. Monthly SIP contributions hit a fresh high of Rs 11,305.34 crore. Around 12.54 lakh SIP accounts opened during the reported month.

Asian stocks slipped Tuesday ahead of a key inflation print stateside that’s expected to strengthen the case for tighter monetary policy.

Nifty rose for the second consecutive session on Jan 10 and closed above 18000. At close, Nifty was up 1.07% or 190.6 points at 18003.3. In the process, Nifty was the best performing index in Asia. Nifty rose well on Jan 10. Advance decline ratio was also well into the positive territory suggesting broad market gains. 17812-17905 is the support for the Nifty in the near term, while 18109 could be a resistance.

Daily Technical View on Nifty

Continuation of upside momentum after a small dip

Observation: After showing minor consolidation type movement in the last couple of sessions, Nifty witnessed sharp upmove on Monday and closed the day higher by 190 points. A long bull candle was formed on the daily chart with gap up opening. Technically, this pattern indicate sharp upside bounce in the market after a small dip. The smaller degree of higher highs and higher lows continued on the daily chart and Thursday's swing low of 17655 could now be considered as a new higher low of the sequence. The initial overhead resistance of 17950 has been broken on the upside and Nifty closed above it. After the negation of larger bearish set up of lower tops and bottoms as per daily and weekly chart recently, the upside momentum has strengthened and the smaller dip in the Nifty is now signaling buying opportunity. The uptick of daily RSI above 60 levels on Monday is also reaffirming the strength of upside momentum in the Nifty.

Conclusion: The upside movement continued in the market after a small dip and the strength of upside momentum seems to be back in the market. The next upside levels to be watched around 18200/18350, which could be achieved in one week. Immediate support is placed at 17870 levels.

Nifty – Daily Timeframe chart

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