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Indian markets could open flat to mildly down in line with mixed Asian markets today. US markets were shut on Dec 24 on account of Christmas - HDFC Securities

Global stocks were mixed in quiet trading on Friday, with many markets around the world closed or ending early in observance of Christmas. Stocks slipped in Paris and Tokyo, inched higher in Seoul and Hong Kong and were nearly unchanged in London. Financial markets took the day off in the United States, Germany and many other countries as another powerful year for stocks nears its end.

European markets ended the day in mixed territory after a thin trading session on Christmas Eve, as traders kept a watchful eye on the latest developments around the omicron Covid variant. Global equity funds saw massive inflows as risk sentiment returned with investors believing that the Omicron variant won't bring a big setback to the world economy next year. According to Refinitiv data, investors purchased $33 billion worth of global equity funds in the week ending Dec. 22, compared with an outflow of $13.1 billion in the previous week. U.S. equity funds lured an inflow of $27.5 billion, while Asian equity funds obtained $1.8 billion. On the other hand, European equity funds saw an outflow worth $1.5 billion.

Shares in Asia-Pacific were mixed in Monday morning trade, with multiple major markets in the region closed for holidays. A mood of caution prevailed as traders evaluated spiking coronavirus cases and a weekend pledge of greater economic support from China’s central bank.

In China, the central bank on Saturday pledged greater support for the real economy and said it will make monetary policy more forward-looking and targeted, amid expectations of easing as a property slowdown saps growth.

Nifty snapped a three day gaining streak on Dec 24 amidst low holiday period volumes. At close Nifty was down 0.40% or 68.9 points at 17003.7.

Nifty logged nominal gains in the penultimate week of 2021, aided by IT and pharma stocks. After a three day rise, Nifty expectedly corrected, though it did not close at the intra day low. Advance decline ratio was in the negative but improved from the afternoon lows. On daily charts, Nifty has formed a Bearish engulfing pattern. A move below Friday’s low i.e. 16909 could result in faster fall in the coming week which also may see low volumes as most institutional players are on year end leave. However a breach of 17118-17155 on the upside could result in better momentum on the upside.

Daily Technical View on Nifty

Market: Observation

Markets corrected on Friday after 3 sessions of gains. The Nifty finally lost 68.8 points or 0.4% to close at 17,003.8. Broad market indices like the BSE Mid Cap and Small Cap indices lost more, thereby under performing the Sensex/Nifty. Market breadth was negative on the BSE/NSE.

Nifty: 15 min chart indicates uptrend intact

* Zooming into 15 minute chart, we see that Nifty opened on a positive note, but selling soon emerged and pulled the index lower. Though there was an intra day bounce back, the bears finally gained the upper hand.

* The near term trend however remains up as the Nifty has bounced back strongly last week and closed above the recent 16840-16970 gap area.

* Traders will need to watch if the Nifty can hold above the immediate support of 16819 for the near term uptrend to continue.

Nifty: Daily chart indicates downtrend not reversed yet

* Daily chart indicates Nifty remains in downtrend as the pattern of lower tops and lower bottoms seen over the last few weeks remains intact.

* On Friday, 20 day SMA acted as resistance and led to Nifty closing lower. 20 day SMA is also below 50 day SMA indicating negative moving average crossover is intact. With momentum readings like 14-week RSI in decline mode, Nifty could move lower once again towards 16410 levels once support of 16819 is broken.

Nifty – Daily Timeframe chart

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