Key equity indices ended in the negative terrain on Friday as global concerns spread nervousness among local investors. Markets made a soft start this morning on the back of mixed cues from the Asian markets. A lower-than-expected manufacturing and retail data in the US has raised a big question mark on the global recovery. Besides, probability of US reporting weak employment data, which will be released today, also weighed sentiments across the globe. Back home, markets are finding it difficult to conquer their intermediate highs as market participants are still sceptical about the valuations and they are opting to book profit at every high. The volatile session of trade resulted in marketmen taking some profit off the table in auto, banking and oil & gas counters while they accumulated healthcare, technology and fast moving consumer goods stocks. The re-listing of Anil Dhirubhai Ambani Group's (ADAG) Reliance Media World received an overwhelming response from investors in trade. Finally, the BSE Sensex declined 84.14 points or 0.49% to settle at 17,101.54, while the S&P CNX Nifty shed 22.80 points or 0.44% to end at 5108.90.

The US markets closed modestly higher on Friday; the unexpected drop in jobless rate has given a sense of confidence among the investors that the economy is on the path of recovery. Though, the good news raised the prospects of increase in rates which led to a sharp rise in dollar, hurting the commodities and energy stocks. The government figures showed that the unemployment rate fell from 10.2% in October to 10% as employers shed the fewest number of jobs since the recession began two years ago. The Dow Jones Industrial Average added 22.75 points, or 0.22%, to 10,388.90. The Standard & Poor's 500 index rose by 6.06 points, or 0.55%, to 1,105.98, after setting a 2009 high of 1,119.13 and the Nasdaq composite index was up by 21.21 points, or 0.98%, to 2,194.35, reaching a high for the year of 2,214.39.

The crude prices declined to their seven week low on Friday, the strength in dollar led the decline in commodities including the crude and even the unexpected drop in unemployment rate was unable to support the crude prices. Benchmark crude for January delivery lost 99 cents to settle at $75.47 a barrel on the New York Mercantile Exchange. In London, Brent crude for January delivery gave up 33 cents to $78.03 on the ICE Futures exchange.

The Indian rupee closed with modest loss on Friday, the domestic currency made a good start but as the stock markets remained volatile it lost its early gains and closed flat. Dollar buying by refiners further added to the downward pressure. Finally the rupees closed at 46.20, 8 paise stronger compared to its Thursday's close of 46.25. The local stock markets closed lower by about 0.5% raising concerns of fund outflow.

The FII on Friday were the net buyers in both equity as well as debt segments. In equity segment the gross buying was of Rs 2365.2 crore against gross sell of Rs 1936.5 crore, while in the debt segment the gross purchase was of Rs 186.6 crore with gross sales of Rs 24.3 crore.

The US markets made a close of modest gains on Friday despite the unexpected drop in unemployment, the gains in dollar some what affected the commodities stock. The Asian markets have made a mixed opening of the week and some of the indices are trading down in the morning trade. The domestic markets that went for a profit booking in last hours of previous trade are likely to remain in consolidation mood even today. Investors are likely to continue their profit booking, though the trend is likely to remain range bound. There will be a buzz from the primary market as the JSW Energy IPO opens today.

Support and Resistance: S&P CNX Nifty and BSE Sensex

                                                          Nifty Top volumes

• Unitech Wireless, which launched mobile services with Telenor, will not participate in national auction of 3G mobile frequency.
• Tata Steel is planning to close a part of Corus' Teesside plant in the UK, cutting 1,700 jobs.
• SAIL has arrived at a new wage settlement for its employees where they will be entitled to a guaranteed benefit at 21% of the basic pay plus dearness allowance.
• Cipla is in talks with global pharma majors for a drug research and supply agreement.
• Tata Motors has signed an agreement with IDBI Bank for providing auto finance to prospective customers.