Benchmark Indices are expected to open on negative note as suggested by trends on SGX Nifty.
Indian markets could open flat in line with rangebound Asian markets today and despite positive US markets on Thursday.
Gaurav Udani, Founder and CEO of ThincRedBlu Securities, said, "Nifty is expected to open negative at 17350 , down by 60 points. Nifty will now see support in its previous resistance range on 17250-17350. Traders can consider buy in dips with strict stop loss for 17600 as targets in the next few sessions."
Mohit Nigam, Head-PMS, Hem Securities, said, "On the technical front, the key resistance levels for Nifty50 are 17,500 followed by 17,590 and on the downside 17,228 followed by 17,050 can act as strong support. Key resistance and support levels for Bank Nifty are 36,660 and 36,260 respectively."
On Thursday Indian Benchmark indices closed on a positive note and continued the upward journey for the second consecutive day in the month of December. Major contributors to these gains were IT, Auto , Financial services, Metal and FMCG.
Strong domestic indicators are playing a key role in driving the market amid negative global cues. Going forward, investors have to be little cautious as the two cases of Omicron variant has been detected in India and can cap the upside movement of the market, said Nigam.
Nifty ended higher for the second consecutive session on December 2. At close, Nifty was up 1.37 percent 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.
US markets close in green
US 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 US 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 US economy.
Meanwhile, the House was prepared to pass an extension of government funding through February 18 in a bid to avoid a partial shutdown this weekend, which some analysts said was adding some additional loft to equities.
Asian stocks trade flat
Majority of the Asian markets are also trading in red. 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.
European markets closed in red.
January West Texas Intermediate crude rose 93 cents, or 1.4 percent, 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.
China's services sector expands at slower pace
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 grows at fastest pace
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.