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Indian markets could open mildly higher in line with positive Asian markets today and higher US markets on Wednesday - HDFC Securities

U.S. stocks finished higher Wednesday, with the major indexes near record highs, aided partly by news suggesting the omicron variant of the coronavirus may not disrupt economies as much as feared. A report from Pfizer and BioNTech indicating that a third dose of their COVID-19 vaccine neutralized omicron in laboratory tests, but that a two-dose regimen is less effective, appeared to offer some solace to the bulls.

Economists polled by Dow Jones Newswires and The Wall Street Journal are forecasting US CPI to rise 0.7% for November and 6.7% annually. The data is due Friday. Investor attention is now also turning to the meeting of the Federal Open Market Committee—the Federal Reserve’s monetary policy body—next week.

China’s consumer prices rose only last month, but factorygate inflation eased, data released on Thursday showed. China’s official consumer price index (CPI) rose by 2.3 per cent in November from a year earlier, up from a rise of 1.5 per cent in October. Meanwhile, the producer price index (PPI), which reflects the prices factories charge wholesalers for their products, rose by 12.9 per cent in November from a year earlier, down from the 26-year high of 13.5 per cent growth in October.

US investment bank JP Morgan predicted on Wednesday that 2022 will mark the end of the coronavirus pandemic and see a full global economic recovery. The bank's outlook report for next year said new vaccines and therapeutics would result in a "strong cyclical recovery, a return of global mobility, and a release of pent-up demand from consumers. Brazil's central bank on Wednesday raised interest rates by 150 basis points (to 9.25%) and signaled another such hike in February, waging one of the world's most aggressive battles with inflation even as Latin America's largest economy has tipped into recession.

Most Asian stocks rose Thursday as traders bet the global recovery will be resilient to the new virus strain. Nifty rose for the second consecutive session on Dec 08 as fears from Omicron variant of Covid subsided. At close, Nifty was up 1.71% or 293 points to 17469.7. Nifty gained the most in points terms in more than 6 months. Nifty has risen sharply over two days. The next resistance is at 17564 while the support could come in at 17252. Sharply positive advance decline ratio hints at some more upside in the near term.

Daily Technical View on Nifty

Market: Observation

* Markets ended higher on Wednesday for second consecutive day. The Nifty Fut finally gained 1.66% to close at 17512. Broad market indices like the BSE Mid Cap gained 1.39% while Small Cap index gained 1.50%, thereby under performing the Sensex/Nifty. Market breadth was positive on the NSE.

Nifty: 15 min chart indicates breakout

* Nifty 15 minutes future chart shows that index has moved up continuously after the channel breakout.

* The uptrend could continue towards north in forthcoming session.

* Immediate upside targets are around 17605– 17805 levels. The current short term uptrend would reverse if the Nifty moves below the recent intermediate swing low of 17225.

Nifty: Daily chart indicates uptrend

* On daily chart, Nifty has continue to show positive momentum and extended the prevailing uptrend. Index has moved above previous swing high which is a positive sign.

* Index is trading above the key support of 17225 level which indicates bulls are continuing the positive momentum.

* Trend remains up and expect further upside levels in coming days. Watch the crucial reversal level of 17225 in coming days.

Nifty – Daily Timeframe chart

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