Indian equities opened higher in Friday's session as the markets largely anticipate easing by the RBI in today's monetary policy outcome. At the open, Nifty after opening higher traded with a cut of 0.05 per cent or 12.5 points to 24,695.9, while the 30-share Sensex also gave up initial gains and was down 30 points or 0,04 per cent.

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The Street by and large is awaiting a Santa Claus rally given the Nifty and Sensex gains of low double-digit i.e around 14 per cent.

Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, "FIIs turning buyers in December, in total reversal of their sustained selling strategy during the last two months, has altered the market sentiments in favour of the bulls. Encouraged by the FII buying, retail investors, too, have jumped on to  the buying bandwagon. This has triggered short-covering leading to sharp intra-day volatility. The 500 point swing in Nifty from the peak to the trough yesterday indicates a tug-of-war between the bulls and the bears."

The best strategy in this volatile context would be to remain invested with higher weightage for largecaps, where there is valuation comfort. The policy response of the RBI and the central bank’s commentary on the growth and inflation outlook will be keenly watched by the market today, added Vijaykumar.

Asian markets

Asian markets mostly were down in Friday's trade tracking overnight losses on the Wall Street and ahead of the US jobs data later today.

Technicals

Anand James, Chief Market Strategist, Geojit Financial Services said, "Yesterday’s dramatic drop in the first half was bested by the sharp turn higher from the vicinity of 24320 pencilled in yesterday as the downside marker. The close thereof fully achieved the near term objective of 24700, while also raising hopes of an early achievement of our medium objective of 25262 set in the last week of November. However the long wicks on either side of yesterday’s candle points to potential for indecision today.

That more than 57 per cent of NSE 500 stocks pulled back atleast 1 per cent from the top is also indicative of nervous bulls. This was not visible on the index though as 82 per cent of Nifty’s constituents recorded a pull back of under 1 per cent from the day’s high. We are not convinced about chasing rallies today, and are inclined to see the Nifty swinging on either side of 24650, he added.