Global trends, FIIs’ move to order markets in holiday-shortened week: Analysts

Stock market participants will track global trends and foreign investors’ trading activity in the holiday-shortened week, amid the lack of any major domestic interest, analysts said.

Equity markets will remain closed on Wednesday for Christmas.” Looking ahead, there are no major events planned. However, several global economic indicators will be important in shaping the market’s path, including US bond yields, the performance of the dollar index, initial jobless claims, new sales data home.

“Amid the high volatility and persistent FIIs (Foreign Institutional Investors) selling pressure, investors are likely to adopt a cautious stance.

Despite the recent weakness, the market situation remains cautiously optimistic. However, incessant selling by FIIs has added to the market pressure,” said Pravesh Gour, Chief Technical Analyst, Swastika Investmart Ltd.

Last week, the BSE benchmark gained 4,091.53 points or 4.98 percent, while the Nifty fell by 1,180.8 points or 4.76 percent.” Services, it said.

The rupee-dollar trend and global Brent crude oil movement will be important in determining the market.” Looking ahead, the week is shortened due to the holiday, and participants will closely monitor FII flows and global market performance for guidance.

Additionally, the scheduled expiration of the contracts coming out in December may increase volatility,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.

Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd, said, Indian markets are expected to remain subdued and will closely follow global indices amid volatile conditions.

“As the holiday season is approaching and global markets are closed for 2-3 days, including the domestic holiday on December 25, market activity is expected to be low this week,” he added.