Market Outlook: Experts say that in the absence of any major catalyst domestically, the stock market is likely to remain in a limited range in this holiday week. According to experts, stock market indices may face volatility this week amid the expiry of monthly derivatives deals on Thursday.
Stock markets to remain closed on Christmas Day
Stock markets will be closed on Monday on account of Christmas. Santosh Meena, Head of Research at Swastika Investmart Ltd, said, “With the Christmas holidays this week, there will be a lack of signals globally. With this, the domestic market dynamics will control the movement in industry sectors and specific stocks. He said the expiry of December futures and contracts contracts with limited signals could bring volatility in the market.
How was the stock market moving in the last session
During the last week, the BSE Sensex lost 376.79 points or 0.52 per cent, while the NSE Nifty lost 107.25 points or 0.49 per cent. The fall in the domestic markets came after a new record of bullish growth. Both benchmark indices hit their all-time highs during the trade on December 20.
Profit booking can be seen in the market
Jitendra Gohil, Chief Investment Strategist at Kotak Alternate Asset Managers, said, “Although India’s equity market valuation is high, the Sensex and Nifty are likely to remain high due to the possibility of a stable government coming to the center.” In addition, the share of foreign portfolio investors (FPIs) at a 10-year low could lead to foreign buying in the debt market. ”
According to experts, the markets had been scrambling to make records for some time. In such a situation, there was a possibility of curbing it in the form of profiteering. This is the reason that after seven consecutive weeks of gains, the week has ended with a decline.
Markets will remain in a narrow range with an emphasis on specific stocks
Siddhartha Khemka, Head of Retail Research, Motilal Oswal Financial Services Limited, said, “The holiday season is starting with Christmas. So, we expect markets to remain in a narrow range this week with an emphasis on specific stocks. Besides, the rupee’s position against global oil benchmark Brent crude and the US dollar will also play an important role in deciding the direction of the stock market.