Dalal Street would tread cautiously this week looking for domestic and global cues, and investors should be careful before making any fresh buys, analysts said.
“The market would remain range-bound and continue to track global cues. It would look for a positive trigger in the domestic front to sustain the rally,” Unicon Financial Chief Executive G Nagpal said.
Over the week, the BSE Sensex gained 575.18 points, or 3.7 per cent and closed at 16,264.30 points. The benchmark doubled from its March low levels on Tuesday last week and scaled to the 52-week high of 16,434.77 points on Thursday.
With market consolidating at this level, traders say investors should exercise caution before making any fresh buys with a short-term horizon.
“The market is looking tired. Although the market would trade with a positive bias, bouts of profit taking at higher levels would keep it under pressure,” the SMC Global vice president Rajesh Jain said.
The analysts feel there would be an uptrend in the medium term as valuations are reasonable at this level. However, profit booking would keep trade choppy during the week.
“There can be some weakness in the market at the beginning of the week. Momentum would pick up towards the end,” Ashika Stock Brokers Research Head Paras Bothra said.
