Dalal Street is likely to witness a lacklustre session this week tracking global markets, which are also expected to trade in a limited range, analysts said.
"Trading will be sideways this week but the downside is limited. The market will see a gradual crawling movement with a positive bias," Ashika Stock Brokers Research Head Paras Bothra said.
Marketmen said the March quarter advance tax payment numbers, which are expected tomorrow, if good, will give a push to the market.
"The market rallied quite a lot after the Union Budget. It is now consolidating. Advance tax numbers will act as a domestic trigger for short term," SMC Global Vice-President Rajesh Jain said.
The US Federal Open Market Committee meeting on March 16 to discuss the monetary-policy strategy and to give a description of the economy is also keenly awaited.
"The FOMC meet will give an idea as to where the interest rate is heading in the US. This will act as a big trigger for the US market, which have been rangebound for quite sometime, and in turn will impact Indian stocks," Jain said.
Also Read
The BSE Sensex rose for the fifth straight week, its biggest stretch of weekly gains since June 2009. The key index gained one per cent to close at 17,166.62 points over the week even as traders booked profit on select stocks.
Analysts said there is no clear trigger for the market to move either ways, but a slight negative news can pull stocks down, although positive news is not driving it forward.
"The good industrial production figures failed to boost the market as concerns of an imminent interest rate hike dampened sentiment. However, any kind of bad news will pull the market down," Bothra said.
India's Industrial output growth eased in January to 16.7 per cent compared to previous month, in line with market forecast.
Foreign funds have been net buyers in Indian equities since the Union Budget on February 26, pouring in more than $2 billion.
"Most of the FII inflow went into the primary market. FIIs will continue to put in funds in Indian stocks as the rupee is strengthening. This will also help to hold the market," Jain said.
Last week the $2 billion follow on public offer (FPO) of state-run NMDC was subscribed 1.25 times, besides the Rs 128 crore initial share sale offer of animation firm DQ Entertainment was subscribed 85 times.
On Friday, the Wall Street ended mixed with the Dow Jones Industrial Average settling 0.12 per cent higher at 10,624.69. While the S&P 500 and Nasdaq ended 0.02 per cent and 0.03 per cent down.