IGI Logo

Indian markets could open mildly lower in line with mixed Asian markets today and sharply negative US markets on Wednesday. - HDFC Securities

The U.S. stock market started December the same way it ended November, with a whipsaw trading session that saw the Dow Jones Industrial Average swing by nearly 1,000 points from peak to trough, ushering in an unsettling phase of volatility in the final month of 2021. Equity indexes squandered what had been shaping up to be a solid rebound, falling after Dr. Anthony Fauci, President Joe Biden’s top medical adviser, said the U.S. confirmed its first case of the omicron variant of the coronavirus that causes COVID-19. Private payrolls in the U.S. rose by 534,000 in November vs 506,000 expected. ISM Manufacturing index rose to 61.1 in Nov from 60.8 in the previous month.

Oil futures settled lower on Wednesday, erasing earlier gains, after the U.S. reported its first case of the omicron variant of coronavirus, which poses a risk of new lockdowns that may lead to lower energy demand. WTI crude fell 61 cents, or 0.9%, to settle at $65.57 a barrel. Investors were also focused on a pending decision on output levels by the Organization of the Petroleum Exporting Countries. OPEC and its allies, together known as OPEC+, will hold a ministerial meeting on Thursday.

India posted a record merchandise trade deficit of $23.27 billion in November compared with $10.19 billion a year ago, preliminary data released by the government showed on Wednesday. India's merchandise exports rose to $29.88 billion for the month from $23.62 billion in the same period last year, while imports rose to $53.15 billion in November from $33.81 billion last year. Stocks in Asia-Pacific struggled for direction in Thursday trade, as concerns over the economic impact of the omicron Covid variant continue to weigh on investor sentiment.

Nifty ended the day higher on Dec 01 as global markets stabilized after the panic over the new Covid variant subsided. At close Nifty was up 1.08% or 183.7 points at 17167. Nifty rose smartly on Dec 01, though accompanied by low volumes. Advance decline ratio ended in the positive. Positive momentum could continue in the near term and Nifty could rise towards 17324-17355. On downmoves, 17051-17064 could offer support.

Daily Technical View on Nifty

Market: Observation

Markets ended higher on Wednesday after another volatile session. The Nifty finally gained 1.18% to close at 17235. Broad market indices like the Nifty Mid Cap 100 gained about 1%. Market breadth was positive on the NSE.

Nifty: 15 min chart indicates downtrend intact

* Nifty 15 minuets future chart has provided a breakout from the downward slopping trendline.

* Present breakout may continue to provide support to the bulls in coming sessions and Nifty may rally towards the immediate resistance of 17300-17347 levels levels. •

* The current short term uptrend would reverse if the Nifty closes below the previous intermediate swing lows of 17100 levels.

Nifty: Daily chart indicates Pull back rally may continue

* On daily chart, we see that Nifty remains in a downtrend despite the bounces seen. The 20 day EMA also continues to trade below 50 day EMA, indicating a negative moving average crossover.

* If index manages to close above 17347 then we may see further upside levels.

* So far trend is down and showing possibilities of minor reversal.

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