NEW DELHI: Dalal Street is expected to see range bound trading this week as there is no major trigger at either the domestic or global levels, analysts say.
“Although the market has moved higher, it appears to be running out of steam as indices are still range-bound,” brokerage house ICICI Direct said.
“In terms of valuation and also from a risk/reward standpoint, the domestic market looks slightly vulnerable and is likely to see some downward correction in the short-term,” he adds.
Despite the overall increase, the domestic market has underperformed most of its global peers, including China, which posted a 19% increase over the same period.
“Investors are cautious and the market is likely to trade sideways this week,” said Avinash Gupta, associate vice president of research at Bonanza Portfolio.
Analysts go on to say that the market could open on a negative bias on Monday after the negative global signals, but could later bounce back on the inflow of funds.
“Dalal Street tracks weak markets in the US and Europe and could open on Monday on a negative bias. However, FIIs are still bullish on India’s growth story and continued inflow will help the market bounce back,” said Alex Mathews, Geojit BNP Paribas Research Head.
Foreign institutional investors are positive about the domestic market and invested 5,590 billion euros in local stocks themselves last week, bringing their total investment in 2010 to 51,185 billion euros, according to Sebi data.
“Global parameters will be important in determining the direction of domestic markets,” added Mr. Mathews.
Domestically, the faster advance of the monsoon remains the key factor for the market. The June IIP number due this week will also be important and will need to be watched.
Domestic markets rallied over the past week and both indices touched new 2010 highs while FIIs continued their buying spree. On a weekly basis, the Sensex was up about 276 points, or 1.5%, to close at 18,143.99.
Wall Street also ended up in the red on Friday on sluggish jobs data and unimpressive July retail sales numbers. The Dow Jones lost 0.20% and the S&P 500 closed 0.37% lower.
https://economictimes.indiatimes.com/market-may-trade-in-a-range-but-fiis-seen-sold-on-india/articleshow/6277705.cms Market may trade in a range, but FIIs seen sold on India