Stock market likely to remain in limited range this week: Analyst
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According to analysts, the markets were in a race to create records for some time. In such a situation, there was a possibility of it being curbed in the form of profit booking. This is why after seven consecutive weeks of growth, the week has ended with a decline. Siddharth Khemka, head of retail research, Motilal Oswal Financial Services Limited, said, the holiday season is starting with Christmas. In such a situation, we expect that this week the markets will remain in a limited range with emphasis on specific stocks. Apart from this, the position of rupee against global oil standard Brent crude and US dollar will also play an important role in deciding the direction of the stock market.
Analysts say that in the absence of any major catalyst at the domestic level, the stock market is likely to remain in a limited range this holiday week. According to analysts, stock market indices may face volatility this week amid the expiry of monthly derivatives deals on Thursday. Stock markets will remain closed on Monday on the occasion of Christmas. Santosh Meena, Head of Research, Swastika Investmart Limited, said, there will be a lack of signals globally due to Christmas holidays this week. Due to this, the dynamics of the domestic market will control the fluctuations in industry sectors and specific stocks. He said that the expiry of December futures and contracts deals with limited signals could bring a volatile situation in the market.
Last week, BSE Sensex fell by 376.79 points or 0.52 percent while NSE Nifty lost 107.25 points or 0.49 percent. This fall in domestic markets came after setting new records of rise. Both the benchmark indices had reached their all-time high during trading on December 20. Jitendra Gohil, Chief Investment Strategist, Kotak Alternate Asset Managers Ltd, said that although the valuations of India’s equity market are high, the Sensex and Nifty may remain high due to the possibility of a stable government at the Centre. Apart from this, foreign buying in the debt market may occur due to the participation of foreign portfolio investors (FPIs) being at a 10-year low.
According to analysts, the markets were in a race to create records for some time. In such a situation, there was a possibility of it being curbed in the form of profit booking. This is why after seven consecutive weeks of growth, the week has ended with a decline. Siddharth Khemka, head of retail research, Motilal Oswal Financial Services Limited, said, the holiday season is starting with Christmas. In such a situation, we expect that this week the markets will remain in a limited range with emphasis on specific stocks. Apart from this, the position of rupee against global oil standard Brent crude and US dollar will also play an important role in deciding the direction of the stock market.
Disclaimer: IndiaTheNews has not edited this news. This news has been published from PTI-language feed.
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