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Indian markets could open lower in line with largely negative Asian markets today and despite mixed US markets on Tuesday.- HDFC Securities

U.S. stock indexes closed mostly lower Tuesday, with the S&P 500 index and Nasdaq Composite snapping a four-day winning streak, as some investors looked toward 2022 with optimism, despite record COVID-19 cases resulting from the spread of the omicron variant. Investors are betting that the spread of the omicron variant of the coronavirus won’t capsize economic growth, even if expectations for another powerful run-up in stocks seems doubtful following outsize gains in 2021.

In a light week for U.S. economic data, the S&P CoreLogic Case-Shiller 20-city price index posted an 18.4% year-overyear gain in October, down from 19.1% the previous month. Some 85% of active U.S. stock funds were on pace to underperform the S&P 500 this year as of Nov. 30, according to Morningstar Direct. In the same period a year ago, 64% of such funds were running behind the S&P 500, according to Morningstar.

Japan's factory output jumped at the fastest pace on record in November, as easing global supply chain bottlenecks helped car production leap out of its recent slump, lifting prospects for a strong fourth-quarter economic rebound. Factory production gained 7.2% in November from the previous month, posting its largest jump since 2013 when comparable data first became available, thanks to rising output of motor vehicles and plastic products.

Most Asian stocks dipped Wednesday after a technology selloff weighed on U.S. equities and as investors assessed the omicron virus-strain outbreak. Sentiment in China is being sapped by Beijing’s tightening oversight of overseas share sales and economic risks from a property slowdown. Authorities are expected to add stimulus next year to steady expansion.

Nifty gained for the second consecutive session on Dec 28 amidst low volumes and aided by positive global cues. At close, Nifty was up 0.86% or 147 points at 17233.2.

Nifty rose for the second consecutive session with advance decline ratio rising sharply to much above 1:1 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 will now face resistance in the 17298-17379 band, while 17155 could provide support. The broader markets could face some serious profit taking towards this weekend.

Daily Technical View on Nifty

Observations

* Yesterday, Nifty opened up by 91 points at 17177

* Post opening Nifty continued to move up and closed near the session’s high 

* Nifty Midcap and Smallcap Indices outperformed by rising 1.15% and 1.63% against 0.87% rise of Nifty

* Nifty managed to close in green for 5 out of last 6 sessions Ø Breadth of the Market is positive with 4:1 advance decline ratio at NSE

* Nifty has risen 840 odd points from the recent swing low of 16410.

* Now, Nifty has reached the crucial resistance of the 50 days EMA and downward sloping trend line on the daily chart.

* The resistance is seen in the range of 17250-17350 for Nifty.

* Any close above 17350 in Nifty would negate the bearish developments on the chart.

* Support for the Nifty is seen at 17000.

Nifty – Daily Timeframe chart

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