New Delhi: Markets may see volatile trading sessions amid derivatives expiry, while muted foreign institutional investor (FII) activity and global markets will dictate market trend in the week starting December 26, according to experts.
There is no major economic event in global as well as domestic sphere and this in turn, would keep the overall market rangebound. Moreover, the holiday spirit is expected to keep the market muted on account of less volume on the FII counter.
"We are expecting selling pressure to remain sidelined next week as FIIs are likely to remain in party mood for Christmas and New Year. FIIs have of late emerged as net seller in the market," said Abnish Kumar Sudhanshu, director and research head at Amrapali Aadya Trading & Investments.
Meanwhile, the cash crunch is likely to reduce post-December 31, and this can translate into some recovery in the short term in the equity markets, experts believe.
Market movement during the week will largely depend on global market trend and trading activity of foreign and domestic institutional investors.
"Globally, US unemployment claims and Crude Oil Inventories data scheduled to release this week is going to be key. Domestically, this week Foreign Reserves data and External Debt Q3 data are scheduled to release," said Rohit Gadia, founder and CEO of CapitalVia Global Research.
The market will be struggling to move above the key level of 8,000, he further said. "If this is the case, we expect the market to find downside momentum," he added.
Meanwhile, Angel Broking in a research note said, "Traders are suggested to remain light in Index and prefer stock specific approach to trade as of now."
For the week ended December 23, the Sensex lost 448.86 points, or 1.69 per cent, while the broader NSE Nifty dropped 153.70 points, or 1.88 per cent.
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