U.S. stocks dropped sharply on Friday, with major indexes posting their lowest finishes since 2020 and logging a third straight quarterly decline as investors grew more fearful that aggressive interest rate hikes by the Federal Reserve will drive the economy into a downturn in an attempt to quell inflation.

Shares in the Asia-Pacific mostly fell on Monday as markets enter the last quarter of the year.

Indian markets could open lower, in line with mostly negative Asian markets today and lower US markets on Friday. 16,752-16,794 band could provide support.

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U.S. stocks ended sharply lower on Thursday, with the S&P 500 sliding to another 2022 low, while heavy losses for Apple Inc. and other tech-related stocks.

Asian stocks dropped on Friday in the wake of another plunge on Wall Street

Sept 30th is the month and quarter end and also the 8th day in the series of fall.

Nifty has a fair chance to break the falling streak on Sept 30th.

16,653-16,752 remains a crucial support band for the Nifty while 17,026 remains a resistance.

Supports for the Nifty are seen at 16,773 and 16,688 levels. Resistances for the Nifty is seen at 16,905 and 16,990. Dow Futures is trading with the loss of 345 points.

U.S. stock indexes on Wednesday rebounded from 2022 lows with support from a sharp fall in Treasury yields and a surprise intervention from the Bank of England in the U.K. government bond market.

The Bank of England said that it was stepping into buy unlimited amounts of long-dated bonds to help stabilize markets.

Nifty continued its downmove on Wednesday. However a bounce in other markets could be mirrored by the Indian markets in the near term. On upmoves 17,038 could offer resistance.

Indian markets could open higher, in line with positive Asian markets today and sharply higher US markets on Wednesday.

Previous Resistance of 16,800 could now act as a support for the Nifty and today’s low is also coinciding with 200 days EMA support. On the upside 17,150-17,200 is the strong resistance zone. Any decisive level above 17,200 or below 16,800 would decide further trend of the Nifty.

The S&P 500 index closed at its lowest level in nearly two years Tuesday with only the Nasdaq Composite escaping a daily loss.

Chicago Fed President Charles Evans said the central bank will need to raise rates by at least another percentage point this year.

The net direct tax collection in India increased by 23 percent to Rs 7.04 lakh crore so far this fiscal as announced by the income tax department. This is great news and it will help in reining in fiscal deficit.

Nifty took support from the upgap of 16,947 and closed flat after making a lower low compared to the previous day. Nifty needs to close above 17,196 for confirmation of upward reversal. On falls, 16,942 will be watched closely.

After showing sharp weakness in the last couple of sessions, Nifty shifted into a positive note with high volatility. Immediate support is placed at 16,950.

The Dow Jones Industrial Average finished in a bear market on Monday for the first time in more than two years as investors fretted over a combination of interest-rate, currency and economic risks. Stocks came under pressure this Monday on worries about rising borrowing costs, while the surging dollar continued to wreak havoc around the world.

Global bonds are now in their first bear market in 76 years, after having dropped 20% from their peaks. 

Nifty has broken the important support of 17,166. 16,947 and 16,794 are the next supports for Nifty while 17,166 could be the resistance in the near term. After steep losses over the last few sessions, a short term bounce is due anytime.

Indian markets could open flat to mildly positive, despite mostly negative Asian markets today and lower US markets on Monday.

Rate sensitives like Auto, NBFC, Banks and real estate could continue to underperform. While defensives like IT, Pharma and FMCG could outperform in today’s trade. Trend has turned bearish for the markets. Rallies should be utilized to lighten the long commitments.