As investors ready for Christmas celebrations, domestic bourses will not have much to cheer about and is likely to see subdued trading this week, feel analysts.
Falling volumes and negative buying sentiment may also grip investors during the week, they said.
“The market would remain steady over the week but would trade in a narrow range. This is the usual weakness that the market sees every year in December on the lack of foreign investor buying activity,” Geojit BNP Paribas Financial Services Head Research Alex Mathew said.
Analysts feel with the holiday season setting in and the activities globally remaining subdued, the domestic market would not have much to cheer about. However, the market would remain volatile as the expiry of the futures and options contract is due this week.
Further, with the strengthening of the US dollar against the Indian currency would keep the markets jittery. “If the dollar moves up further we would see further fall in the market. If the US dollar weakens recovery might set in next week,” Taurus Mutual Fund Managing Director RK Gupta said.
Over the week Bombay Stock Exchange benchmark Sensex lost 400 points or 2.3 per cent to 16,719.83 points, making it first weekly loss in three weeks. On Friday the NSE barometer Nifty closed down by 1.07 per cent to 4,987.70.
“There would be volatility in the market although stocks would trade in a narrow range of 4,900—5200 points for Nifty.
This week we will be entering the consolidation phase as markets worldwide are lagging a definite direction,” SMC Global Vice President Rajesh Jain said.
Marketmen expect with positive cues coming from the US markets on Friday, Indian bourses may see a positive opening on Monday. “Our market is oversold. Some recovery might come in although their would not be any substantial upside,” Mathew said. Analysts expect banking and IT counters to post gains this week.
At the end of Friday the Wall Street ended in the green with the Dow Jones Industrial Average gaining 21 points to 10,328.89 and the S&P 500 moving up 0.58 per cent to 1,102.47.
Further, tech heavy Nasdaq rallied 1.45 per cent to 2,211.69 points.
