New Delhi: Equity markets would watch out for global cues in absence of any major event on the domestic front, and indices may face volatility in view of the scheduled derivatives expiry this week, analysts said.
“During the week, volatility is likely to remain high due to the scheduled derivatives expiry of November month contracts on November 25. At the same time, the focus would largely remain on the global markets for cues, in absence of any major event on the domestic front,” said Ajit Mishra, VP-Research, Religare Broking.
Yesha Shah, Head of Equity Research, Samco Securities, said, “As the result season is through, D-Street will look for cues from international factors to decide its movement. In the absence of any positive triggers, indices are expected to remain under pressure as markets have been embracing à ‘sell on rise’ mood.
“As global macros will continue to dominate, investors should observe FIl activity to weigh the sentiment and adopt a selective approach rather than venturing in any aggressive trades.”
During the holiday-truncated last week, the 30-share BSE benchmark tumbled 1,050.68 points or 1.73 percent. Markets were closed on Friday on account of Guru Nanak Jayanti.
“Going forward, rising inflationary pressure will continue to haunt global markets as fears of rate hikes will pump out liquidity from emerging markets like India,” said Vinod Nair, Head of Research at Geojit Financial Services.
Movement of the rupee, Brent crude, and investment trend of foreign institutional investors would also be in focus.
“Overall market is in consolidation mode as valuations are rich despite good quarterly performance. Also, global. cues are keeping markets volatile, according to Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.