The domestic market is likely to see a narrow movement on Thursday. Analysts expect trading volume to remain low, as most investors are in the year-end holiday mood. However, according to them, stock-specific action is likely due to settlement in the F&O series on the NSE.

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd, said: " Markets are expected to remain sideways until the end of the year due to thin volume, lack of trigger and rising 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 January 2022."

SGX Nifty at 17,302 (720 am) indicates a positive opening for Nifty futures, which on Wednesday closed at 17,215.90. However, most equities across Asia-Pacific are in red. Except for Taiwan, all the major markets are down between 0.1 and 0.5 per cent in early trade on Thursday.

Overnight, the US stocks also closed flat amid thin volumes.

Prashant Tapse, Vice President (Research) at Mehta Equities Ltd, said: Volatility is likely to be the hallmark of tomorrow’s trade as traders will look to roll over their F&O positions to January 2022 series. The spotlight will remain on Omicron developments and President Biden’s spending promises.

Technically, Devarsh Vakil, Deputy Head of Retail Research, HDFC Securities, said: "Nifty found resistance on the downward sloping trend line adjoining previous swing highs on the daily chart. 50-day EMA has also been acting as a hurdle for the Nifty at 17340. Nifty has got strong support at the 17050 odd levels, derived from the upward sloping trend line, adjoining previous swing lows on the daily charts."

Related Topics
comment COMMENT NOW