Indian markets are likely to remain listless day, as most global markets shut for New Year eve. However, SGX Nifty at 17,307 indicates a positive opening as Nifty January futures closed at 17,285.

Markets are expected to remain sideways over the next few sessions due to thin volume on holiday mood and lack of trigger, said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd. "Investors are cautious and are on the sideline given uncertainty around severity of Omicron cases. Q3 results season and build up to the upcoming budget session would be key events that the market would be looking for in Jan 2022," he added.

Two important things to watch out for in the market are the spread of the new variant Omicron and the US Fed policy outcome, said Rahul Gupta, AVP-Derivative Sales, Institutional Equity, Emkay Global Financial Services. The Fed has already indicated three rate hikes in 2022.

Healthy rollovers

Nifty futures saw a rollover of 77 per cent and closed with a higher premium of over 81.05 points. Similarly, Bank Nifty January futures also have a rollover of 84 per cent and a healthy premium of 230 points.

Benchmark indices continued to trade in a narrow range on the back of thin volumes due to tepid investor activity ahead of the year-end, said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, "For the bulls, 17,275 would be the important breakout level to watch and if the index manages to trade above the same, we can expect a quick uptrend towards 17,325-17,375 levels. On the flip side, trading below 17,150 could trigger further weakness up to 17,100-17,065."

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