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

The S&P 500 index scored its 68th record close of the year Thursday, ahead of the long Christmas holiday weekend, on optimism that the omicron variant of COVID won’t derail global economies.

Investors also were absorbing a relatively benign batch of U.S. data, including inflation, durable goods orders and jobless benefit claims published Thursday. Trading volumes were expected to be thinner than usual ahead of the Christmas and New Year holidays. The US stock market will be closed on Friday in observance of the Christmas holiday. Wall Street improved following reassurances this week from the White House that no 2020-style lockdowns were on the table as part of its plan to fight the coronavirus’ omicron variant.

First-time jobless claims were unchanged at 205,000 in the week ended Dec. 18, while consumer spending and personal spending nudged higher, the 12-month PCE inflation indicator rose 5.7% in November. Durable goods orders rose 2.5% for the month. The University of Michigan’s gauge of consumer sentiment rose slightly to a final December reading of 70.6 from the initial figure of 70.4. U.S. new home sales jumped 12.4% to a seasonallyadjusted annual rate of 744,000 in November from a revised 662,000 in the prior month.

Asian stocks were steady Friday after U.S. shares reached an all-time high amid optimism that the economic recovery will shrug off the outbreak of the omicron virus strain. Stocks rose after a U.K. study suggested that the infections are less likely to lead to hospitalisation.

Nifty closed higher for the third consecutive session on Dec 23 after opening gap up. It remained in a 90 point range throughout the day. At close Nifty was up 0.69% or 117 points at 17072.6.

Nifty rose with an upgap but formed a doji after a rise suggesting indecision on the part of the traders at higher levels. Advance decline ratio continued to remain positive. Till 17119 is crossed, there would remain a possibility of a correction of the recent rise. 16936-16971 on the downside remains a support band.

Daily Technical View on Nifty

Observation

* Nifty rose for the third consecutive session, to close at 17051 Ø From the bottom of 16410, Nifty has seen a rise of more than 650 points

* Yesterday, Nifty ended the session with “DOJI” candlestick pattern on daily chart

* Recent pullback from the low has been with thin volumes, which shows weak rally

* Breadth remained strong as Advance decline ratio remained at 13:7 at NSE

* Nifty Midcap and Smallcap indices rose 0.87% and 1. 2 2% re s pe c tively. B o t h t he se i n di ce s outperformed the Nifty

* Nifty has got resistance at 17170, derived from 61.8% Fibonacci retracement of the down swing seen from 17640 to 16410 

* Level above 17170 will negate all the negative developments on Nifty charts.

* Support for the Nifty has shifted up to 17936

Nifty – Daily Timeframe chart

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