With no major domestic market-moving event scheduled this week, stock market investors would largely focus on global trends and foreign fund movements, and could face volatility when monthly derivatives expire, said analyzed.
This week the minutes of the Federal Open Market Committee (FOMC) meeting are to be released which would provide further clues to the market, said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
“With all major events behind us, participants will take cues from global markets, crude movement and currency in the market. Moreover, the scheduled monthly expiration of November derivatives contracts that would keep traders on their toes,” Ajit Mishra , VP – Research, Religare Broking Ltd, said.
Last week, the Sensex fell 131.56 points or 0.21 percent, while the Nifty declined 42.05 points or 0.22 percent. Recently, there has been a bearish trend in global markets.
“The market has remained range bound amid a lack of cues, and will look for direction ahead of the F&O expiration. The good part is that the market is just breathing after a long period, and there is a good chance that there will be upside. However, we are looking at profit bookings in the broader market,” said Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd.
Apart from F&O expiry, institutional flows, which have picked up over the past few trading sessions, will be important, he said.
“On the global side, the minutes of the US FOMC meeting will lead to some volatility in global markets. The movement of the dollar index, US bond yields and crude oil prices will remain other critical factors to watch out for,” Gour said.
Analysts said that in the recent recovery, the domestic markets were showing resilience when the global indices especially the US markets were facing the heat.
Vinod Nair, Head of Research at Geojit Financial Services said, “In the absence of major domestic triggers, the domestic market is expected to continue to focus on global trends.”