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Indian markets could open flat despite mildly higher Asian markets today and despite mildly negative US markets on Thursday. - HDFC Securities

U.S. stock indexes closed lower Thursday, halting a multisession win streak for the S&P 500 and the Dow industrials, which both touched intraday records before a drift higher faded in the second-to-last session of 2021.

The Dow finished lower for the first time in seven sessions, halting its longest streak of gains in 11 months, as bullishness on Wall Street took a pause, despite a report showing that labor shortages and demand for workers are overshadowing concerns about omicron at the moment. U.S. Labor Department data show that 198,000 applied for unemployment benefits during the week ended Dec. 25, leaving new jobless claims around a 52-year low amid the spread of omicron. A recent uptick of Omicron COVID-19 variant-related infections has not yet led to a surge in layoffs; this is a positive sign for the economy.

Chicago PMI rose to 63.1 in December up from 61.8 last month. China's factory activity unexpectedly accelerated in December, but only by a small margin, amid disruptions from COVID outbreaks and as the broader economy loses momentum in the fourth quarter. The official manufacturing Purchasing Manager's Index (PMI) rose to 50.3 from 50.1 in November. Activity in China's overall services sector grew at a slightly faster pace in December, rising to 52.7 from November's 52.3. China's official composite PMI, which includes both manufacturing and services activity, stood at 52.2, unchanged from November.

Asia Pacific stocks were mostly up on Friday morning, potentially boosted by better-than-expected Chinese data and a rally in U.S.-listed Chinese equities. However a majority of markets were shut due to New Year holidays.

Nifty ended almost flat on Dec 30 after a range bound F&O expiry day. At close, Nifty was down 0.06% or 9.6 points at 17204. In the process Nifty closed within a 20 point range over the past three sessions. Nifty seems to have run into a resistance over the last two days after the recent run up. Advance decline ratio ended marginally in the negative. Nifty continues to remain in the 17286-17112 band with a mildly upward bias.

Daily Technical View on Nifty

Observations

* Nifty ended almost flat on Dec 30 after a range bound F&O expiry day.

* Nifty opened nominally higher, sold off in the first few minutes of trade but again clawed back. It remained in an 84 point band through the day. At close, Nifty was down 0.06% or 9.6 points at 17204.

* In the process Nifty closed within a 20 point range over the past three sessions.

* Nifty seems to have run into a resistance over the last two days after the recent run up.

* Nifty continues to remain in the 17286-17112 band with a mildly upward bias.

* Advance decline ratio ended marginally in the negative.

* 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 17337.

* Nifty has been trading in downward sloping channel on the daily charts.

* Nifty has got strong support at the 17100 odd levels, derived from the upward sloping trend line, adjoining previous swing lows on the daily charts.

Nifty – Daily Timeframe chart

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