Trends on SGX Nifty indicate a negative opening for the index in India with an 21-point loss. Indian markets could open flat despite mildly higher Asian markets today and despite mildly negative US markets on Thursday, said Deepak Jasa ni, Head, HDFC Security Retail Research.
Nifty ended almost flat on December 30 after a range bound F&O expiry day. At close, Nifty was down 0.06 percent or 9.6 points at 17,204. 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.
US stocks close low
US 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.
New jobless claims at 52-year low in US
US Labor Department data show that 198,000 applied for unemployment benefits during the week ended December 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 factory activity up in December
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 up
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 the New Year holidays.
Mohit Nigam Head - PMS, Hem Securities said, "Benchmark Indices are expected to open on a positive to flattish note as suggested by trends on SGX Nifty. The American Market ended lower on the previous trading day. Not much movement was witnessed in European markets. The market will keep a close watch on Covid cases and fresh restrictions. If these go up significantly, it may keep the market volatile. The market will closely watch Markit Manufacturing PMI numbers for December which will be released today."
Stocks to watch out
Auto stocks will be in focus today, as they will react to monthly sales data released over the weekend.
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