D-Street likely to see range bound trading this week: Analysts

Dalal Street is expected to see range-bound trading this week in the absence of a major positive trigger amid weak global cues, analysts said.

"Many big corporate houses have disappointed the Street on June quarter earning front. I do not see any breakout rally in coming sessions. Markets are expected to move in a range," SMC Capitals Equity Head Jagannadham Thunuguntla said.
    
Besides, the slower growth of world's largest economy, the US, in the second quarter may cast a shadow of domestic markets, analysts said.
    
"Tracking negative global cues, market may open on a weak note on Monday," said an analyst at a domestic brokerage.
    
The US economy expanded at a slower pace at 2.4 per cent for the three-month period ended June 2010, primarily due to lower consumer spending. Analysts were expecting the national economy to expand about 2.6 per cent in the June quarter.
    
"The current rally is already nine weeks old. Hence, it is already in the overbought territory. So, some correction cannot be ruled out," ICICIDirect.Com said in a note.
    
Domestic markets took a breather previous week, with the benchmark indices ending in red after having posted modest gains over the past three weeks. In fact, a week ago, the BSE Sensex closed above the 18,000 level, but could not sustain those gains amid some disappointing earnings and mixed global cues.
    
"It seems the bull run is over. The market is likely to see some more corrections in the coming days. Poor performance by some big corporate houses and weak global sentiment may hurt the upward journey of local markets," Geojit BNP Paribas Research Head Alex Mathews said.
    
In the past week, the Sensex lost 289 points, or almost 1.6 per cent, to close at 17,841.74. Index heavyweight Reliance Industries and Larson & Toubro dragged the index down, as the stocks closed 5 per cent and 7 per cent down on a week-on-week basis.
    
Lower-than-expected first quarter earnings by Hero Honda and ONGC cast a shadow over the market on Friday shaving off 124 points from the BSE benchmark Sensex.
    
"The market is expected to continue with consolidation," Bonanza Portfolio Assistant Vice President Avinash Gupta said.
    
Marketmen also said the revival of monsoon may bring cheer to the market and sentiment may turn bullish in days ahead. The revival of monsoon rains in July 2010 augurs well for the Indian economy that is driven by strong domestic demand. The annual monsoon rains were 38 per cent above normal in the week till July 28.
    
Durable goods order and manufacturing data is scheduled to come this week that will be looked at by market participants, analysts said.
    
On the global front, all the key indices in Asia and the Europe ended in red on Friday. Wall Street ended mixed. Dow Jones index fell 0.01 per cent, whereas S&P 500 closed with a net gain of 0.01 per cent.