Will Sensex and Nifty maintain their rally on the last trading day of the week amid weak global indices? 5 things to know

Despite increased volatility after two days of strong momentum, benchmarks managed to end the day on Thursday with gains for the third session in a row. While Nifty and Sensex closed with gains of around 0.3%, the broad market outperformed with the midcap index rising 0.6% and the smallcap index gaining 1.2%.

The benchmarks Sensex and Nifty are expected to open in the red on Friday as trends on SGX Nifty indicated a cautious opening for the larger index in India with a loss of 17 points. Nifty futures were trading around 17,528 levels.

The market has seen a good rally over the past three days, with buying emerging at lower levels with the comfort of a lower valuation and fears of the Omicron virus subsiding. We expect the market to consolidate at current levels over the next few days after rising sharply. The overall structure should remain positive and therefore suggests that trades maintain the buying strategy if downside, said Siddhartha Khemka, head of retail research, Motilal Oswal Financial Services Ltd.

Key points to watch out for before the opening bell

Global indices

Asia-Pacific markets fell on Friday as investors assess the risks associated with the new omicron Covid variant and anticipate key inflation data in the United States. The Topix index traded slightly higher.

Asian markets mirrored US markets as Wall Street closed lower on Thursday as investors took in profits after three straight days of gains. The Dow Jones Industrial Average lost 0.06 points to 35,754.69, the S&P 500 lost 33.76 points, or 0.72%, to 4,667.45 and the Nasdaq Composite lost 269.62 points, or 1.71%, at 15,517.37.

Technical view

Nifty trained a Dragonfly Doji as it turned out to be a distance trading session. Although Nifty closed a stock below the 50-day EMA, it is the Nifty 500 index that is comfortably above this average. New long positions were seen in futures contracts while BN recorded profits. The FII sold in cash worth 1,585 crore rupees while the DII continued to buy and add shares worth 783 crore rupees, said Rahul Sharma, chief director of the research, JM Financial Services Limited.

The concentration of options is seen at 17,500 on horseback, indicating a possible large movement on either side. BN added the most OI with 37,000 overlaps. However, the concentration is at 37K Put and 38K Put. Some cooling may occur, but Nifty's weekly setup is quite robust and dips can be used as buying opportunities. Nifty supports at 17,445 and 17,251 while resistance is placed at 17,545 and 17,650, he added.

Smart support, resistance levels to watch out for

Nifty finished higher for the third consecutive session on December 9, helped by positive global indices. Nifty opened higher but quickly encountered a correction. After hitting an intraday low at 10:30 am, it started to hit higher lows. At the close, Nifty was up 0.27% or 47 points to 17,517.

Nifty saw lower bullish momentum on day three as expected. However, the lead-to-fall ratio continues to remain high, comforting feelings. Nifty may face resistance from the 17564-17600 band while the 17351-17379 band may provide support, said Deepak Jasani, head of retail research, HDFC Securities.

Stocks under F&O ban on NSE

Escorts and Indiabulls Housing Finance are the two stocks subject to the F&O ban for December 10. Securities during the blackout period in the M&O segment include companies in which the security has exceeded 95% of the market-wide position limit. All clients / members should trade derivative contracts of both securities only to reduce their positions by offsetting their positions. Any increase in open positions to attract appropriate criminal and disciplinary action.

IPO watch

Star Health and Allied Insurance, the country's largest private health insurer, will debut on the market on Friday. He is likely to attend a weak list. The company's shares traded Thursday at a discount of Rs 60 to Rs 70 from its IPO price of Rs 900 on the gray market.

Metro Brands Limited (MBL), backed by Rakesh Jhunjhunwala, launches its first public issue on December 10. The IPO will close for subscription on December 14. The price range set for the IPO is Rs 485-500 per share with a par value of Rs 5 each.

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