Global Macro Data, WPI, Dollar Index Strength To Provide Direction To Markets

The markets remained muted in the truncated week to September 9, 2021 and we can see correction going ahead to a degree owing to weak institutional flow. But what is noteworthy is there are no signs of weakness in the Indian market and it may still hit new highs given the strong buying impetus for small and mid cap scrip.

Global cues including the ECB policy decision can also weigh to an extent. Plus there are some global numbers due to be revealed next week including US inflation numbers on September 14 as well as China's industrial production on September 15. Retail sales data in the US will be put forth on September 16, 2021.

Dollar index which is being weighed down may also fuel FII inflow, propelling the indices to new high. Back home, WPI inflation for August will be revealed on September 14, 2021.

Technicals:

Nifty points to a bullish momentum but last week ended with a small indecisive Doji candlestick formation Last week's high and low of 17,436 and 17,254 respectively will be important crucial point to take the Nifty to levels of 17600/17750 in coming days while a move below 17,254 can result in some short term weakness will be the next support.

Sectorally, there is bullishness in the Nifty PSE index and PSU stocks including the likes of GAIL, ONGC and OIL India can outperform given strong momentum in global natural gas prices. Also, metal stocks can again see traction owing to weakness in dollar index and prices of some of the metals at multi-year high levels.

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