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Indian markets could open flat in line with rangebound Asian markets today and despite positive US markets on Thursday  - HDFC Securities

U.S. stocks snapped a two-day skid Thursday, with the Dow industrials producing the best percentage gain since early March, as investors looked past the spread of coronavirus and a fuzzy path for monetary policy and the U.S. economy. A gauge of global equities surged on Thursday as Wall Street rallied on hopes the Omicron COVID-19 variant will prove mild and will not halt a strongly recovering U.S. economy.

Meanwhile, the House was prepared to pass an extension of government funding through Feb. 18 in a bid to avoid a partial shutdown this weekend, which some analysts said was adding some additional loft to equities.

January West Texas Intermediate crude rose 93 cents, or 1.4%, to end at $66.50 a barrel on the New York Mercantile Exchange, after the Organization of the Petroleum Exporting Countries and their allies, together known as OPEC+, decided to rollover their current policy and raise monthly overall production by 400,000 barrels a day in January.

Activity in China's services sector expanded at a slower pace in November amid rising inflationary pressures and continuing small-scale COVID-19 outbreaks, a private survey showed on Friday. The Caixin/Markit services Purchasing Managers' Index (PMI) fell to 52.1 in November from 53.8 in October. Japan's services sector activity grew at the fastest pace in more than two years in November on a jump in new business, signalling stronger consumer confidence as the coronavirus pandemic subsided. The final au Jibun Bank Japan Services Purchasing Managers' Index (PMI) rose to a seasonally adjusted 53.0 from the prior month's 50.7 and a 52.1 flash reading.

Asian stocks were flat Friday as traders evaluated risks from the omicron virus strain, while Treasury yields pared a climb spurred by Federal Reserve comments about a quicker reduction in stimulus.

Nifty ended higher for the second consecutive session on Dec 02. At close, Nifty was up 1.37% or 234.75 points at 17401.7. In the process the Nifty recorded the largest single day gain in a month.

Nifty nicely built on the gains made on the previous day on Dec 02 and crossed the crucial 17355 level. Now the next resistance for Nifty is at 17536 while support could come in at 17213.

Daily Technical View on Nifty

Market: Observation

* Markets ended higher on Thursday for second consecutive day. The Nifty finally gained 1.26% to close at 17439. Broad market indices like the BSE Mid Cap gained about 1% while Small Cap indices gained about 1.12%, thereby under performing the 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 sharply after the earlier breakout witnessed yesterday.

* The current uptrend could continue in coming days with minor dips.

* Immediate upside targets are at 17560 – 17659 levels. The current short term uptrend would reverse if the Nifty goes below the recent swing lows of 17280.

Nifty: Daily chart indicates uptrend

* On daily chart, Nifty has showed positive momentum and reversed the prevailing downtrend. The 20 day EMA and 50 day EMAs are indicating an earlier signs of positive moving average crossover.

* Index has moved up as per expectation now it may provide minor dips which could be used as buy on dips opportunity.

* Trend is now up and expect further upside levels in coming days. Watch the crucial reversal level of 17280 in coming days.

Nifty – Daily Timeframe chart

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