IGI Logo

Indian markets could open flat in line with largely rangebound Asian markets today and despite mixed US markets on Wednesday.- HDFC Securities

Major U.S. stock indexes swept to record closes Wednesday, except for the Nasdaq Composite Index, which finished slightly lower as longer-dated Treasury yields climbed to one-month highs. The Dow has now risen six straight trading days, marking the longest streak of gains since a seven-session run from March 5 to March 15 this year.

The omicron variant of the coronavirus remains a focus for investors, but the new strain has yet to significantly impede the market’s recent uptrend, even as the World Health Organization on Wednesday reported that the number of COVID-19 cases recorded world-wide increased by 11% last week compared with the previous week, led by the Americas. The yield for the 10-year Treasury rose to its highest level in about a month at 1.54%.

The U.S. trade deficit in goods mushroomed to the widest ever in November rising by 17.5% to $97.8 billion from $83.2 billion in October. That exceeds the previous record deficit set in September of $97 billion. Imports rose by 4.7% with industrial supplies leading the way with an increase of $5.7 billion to $63.2 billion, followed by consumer goods rising by $2.9 billion to just shy of $67 billion as retailers rushed to fill store shelves ahead of Christmas. Both were record highs. Goods exports, meanwhile, declined 2.1%, with weakness across the board outside of a 4.3% increase in food exports. There was some positive economic data from South Korea where a 5.1% surge in November industrial output could signal an easing in global supply bottlenecks.

Asian share markets got off to a listless start on Thursday as the spread of Omicron clouded what is the last trading day of the year for many exchanges around the globe, while oil was close to finishing 2021 with gains of more than 50%.

Nifty broke the two-day winning streak on Dec 29 amidst low volumes. At close, Nifty was down 0.11% or 20 points at 17214. Advances outnumbered the declines for the third day on the trot even as volumes remain on the lower side. This reflects the lower presence of institutional players due to which traders are having a field day.

Nifty found resistance on the downward sloping trend line adjoining previous swing highs on the daily chart. 50 days EMA has also been acting as a hurdle for the Nifty. It faces resistance from the 17285-17298 band. Nifty has got strong support at the upgap level of 17112.

Daily Technical View on Nifty

Observations

* Nifty broke the two-way winning streak on Dec 29 amidst low volumes.

* Nifty opened lower amidst softer global cues, but recovered immediately and made an intraday high of 17286 levels.

* Nifty gave back all the gains, and fell sharply during the last half hour where it fell nearly 80 points.

* Advances outnumbered the declines for the third day on the trot even as volumes remain on the lower side

* Nifty found resistance on the downward sloping trend line adjoining previous swing highs on the daily chart.

* 50 days EMA has also been acting as a hurdle for the Nifty at 17340.

* Nifty has been trading in downward sloping channel on the daily charts. Yesterday, Nifty touched higher band of the channel and reversed south in last half an hour

* Nifty has got strong support at the 17050 odd levels, derived from the upward sloping trend line, adjoining previous swing lows on the daily charts.

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