The Federal Reserve is likely to raise U.S. borrowing costs faster and further than previously expected after data on Tuesday showed underlying inflation broadening out rather than cooling as expected. The Dow Jones closed nearly 1,300 points lower Tuesday as technology stocks led the market to its worst day since June 11, 2020, the dollar index rose 1.5% in its biggest one-day percentage gain since March 19, 2020 to 109.88, close to the highest level in two decades. The fact that the US markets reacted negatively to the inflation number means that our markets could open gap down. Whether and how much it recovers from the morning lows will be crucial to watch. 17,743 could offer support in the near term.

Nifty has managed to surpass the previous swing high resistance of 17,992. Intraday supports for Nifty are seen at 18,040 and 17,980. Resistances for Nifty are seen at 18,118 and 18,200.

U.S. stocks finished with a fourth consecutive day of gains on Monday, handing the S&P 500 and Nasdaq Composite their longest winning streak in two months. Asian equities extended the global rally in risk assets amid speculation Tuesday’s US consumer price data will support bets that inflation there is near peaking. Nifty could face resistance at 18,115 while 17,807 could act as a support in the near term. Indian markets to open higher, in line with higher Asian markets today and positive US markets on Monday.

Nifty is on the verge by surpassing the previous top resistance of 17,992. Above 17,992, Nifty has got resistances at 18,050 and 18,128. Intraday support for Nifty is seen at 17,910.

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Inflows into equity mutual funds in India fell to the lowest in 10 months even as the stock benchmarks rallied. Looking ahead, markets will be focused on the August US consumer-price index due Tuesday, which is seen as one of the key reports before the Sept. 21st Fed rate decision. India’s CPI number due on Monday will also be keenly watched. A close above 17,992 for Nifty would result in a fresh trend breakout that could bring more bullish momentum with 18,115 being the next resistance. Support has now shifted up to 17,484 levels.

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Breadth of the markets has gradually turned negative after strong opening. Nifty intraday supports are seen at 17,766 and 17,724, while resistance for the same are seen at 17,881 and 17,925.

Wall Street stocks initially fell in the wake of Federal Reserve Chair Jerome Powell’s comments but then reversed course to end with solid gains, helped by rate-sensitive banks and healthcare company shares. The European Central Bank hiked interest rates by 75 basis points and signaled that more jumbo-sized rate hikes would likely follow. India (which accounts for 40% of the global rice trade) on Thursday imposed a 20 percent duty on exports of various grades of rice. Nifty broke above the recent high of 17,777 easily. Now the next tough resistance is 17,992. On falls, 17,651 could be the support. Indian markets could open higher, in line with higher Asian markets today and positive US markets on Thursday.