Domestic markets to open on a flat note amid bearish signals

The domestic markets are likely to remain under pressure amidst negative global cues. Overnight US stocks witnessed strong selling pressure, especially Nasdaq, which plunged 2.5 per cent. The Dow Jones Industrial Average and S&P 500, which were ruling in the green during most part of the day, succumbed to late-hour selling to end in the negative.

Most Asian stocks are down though Korea, Taiwan and Australia stocks eked out marginal gains. SGX Nifty at 17,287 indicates a fall of 30 points at opening for Nifty futures, which closed at 17,317.50 on Thursday.

Analysts said unrelenting selling by foreign portfolio investors and a fear of Omicron spread were keeping world markets under pressure.

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd said, the overall market remains in a tight range with bearish undertone as selling pressure is intact at higher levels. "Though the global cues have turned positive post the big event of the Fed policy, continued FII selling, absence of any positive trigger and strong action in the primary market are putting pressure on the secondary market," he said.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, said: "This week so far, the Nifty has corrected over 450 points and is trading near the important retracement support level. While the short term texture of the market is still weak, a quick pull-back rally is not ruled out, if the Nifty succeeds to trade above 17350. However, if it trades below 17350, a correction wave could continue up to 17200-17150."

According to Ajit Mishra, VP - Research, Religare Broking Ltd, "As all the major events are over now, we feel the performance of the global markets would be critical in the days to come. At the same time, we expect the buzz to continue in the primary market. Among the sectors, only the IT pack looks decisive to us, while others are witnessing mixed trends. Participants should plan accordingly."

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