Indices Eyes Flat Open Ahead of Key Data

8 Jan 2024 , 08:49 AM

The outlook for the broader index in India, represented by GIFT Nifty, suggests a flat start with a marginal loss of 3 points.

In the previous trading session, the Indian benchmark indices Nifty 50 and Sensex concluded in positive territory. Nifty 50 settled at 21,710.80, while Sensex closed at 72,026.15.

Across Asia, stocks are exhibiting narrow trading ranges as investors await crucial inflation data from the US, Japan, and China later in the week. The mixed job and activity data from Friday contributed to a cautious sentiment at the beginning of the year. Japanese markets are closed on Monday due to a holiday.

At the start of the trading day, South Korean shares saw an uptick, and Australian equities posted marginal gains. Futures contracts in Hong Kong indicate a flat opening. In the United States, equity futures show little change following a 0.2% increase in the S&P 500 on Friday, driven by reports of better-than-expected job growth but a slowdown in the service sector.

Reflecting on the first week of 2024, the Nifty 50 witnessed volatility. Despite recovering most losses from Tuesday and Wednesday, the index failed to close above the crucial 21,731 level necessary for a positive weekly close.

After seven consecutive weeks of gains, the Nifty experienced declines in two of the last three weeks. The elusive 22,000 mark continues to pose a challenge as the index encounters resistance in the range of 21,750 to 21,800. Last week followed this pattern, with the Nifty unable to sustain levels above Monday’s high of 21,834.