Dalal Street is largely expected to remain under pressure this week on domestic inflationary concerns, but softening global crude oil prices triggering buying activities cannot be ruled out either, say analysts.
“Markets are likely to remain sideways as inflation concerns will put a downward pressure, while global cues, including softening of crude oil and rally in US markets, could give a needed positive push to the sentiments,” SMC Global Vice-President Rajesh Jain said.
Analysts believe any improvement in the market sentiment would depend on global cues even as negative domestic triggers, like inflation soaring to 12.44 per cent and tight monetary policies of the apex bank, would continue to haunt the market.
Benchmark index BSE Sensex lost over 700 points over the past week and settled at 14,724.18 down 368 points on Friday, while the 50-share NSE benchmark index, the Nifty, ended at 4,430.70 points, down nearly 100 points.
Meanwhile, Bonanza Portfolio President Research P K Agarwal said: “Markets next week should improve and hopefully 4,400 points will provide the support level to the NSE index. In case oil prices stay soft, we might even find the Nifty taking out the strong resistance of 4,650-4,680 points.”
In its outlook for the market in the short term, domestic brokerage firm Sharekhan said things were likely to improve from the December quarter this financial year.
“Though the market sentiment has improved considerably, this improvement in sentiment is unlikely to translate into a runaway rally due to the lingering concerns, such as monetary tightening, moderation in economic growth, risk to corporate earnings, erratic monsoon and worsening credit squeeze globally,” the Sharekhan report said.
