Dalal Street is likely to witness volatile trade this week with a downward bias taking cues from global markets as concerns about debt repayment problems in Dubai loom large over markets worldwide, analysts said.
Brokers said market had treaded into the overbought zone and needed a trigger to undergo correction. Weakness in the street may continue for the next few days, they said.
“The market will remain volatile and trade in negative terrain this week,” Geojit BNP Paribas Financial Services Head, Research Centre, Alex Mathews said.
The market would now look for some announcement from the Dubai government about how it is planning to deal with the debt crisis, which revived fears of financial meltdown.
“In the short term although the crisis might keep the market under pressure, going ahead markets here will take its own direction,” Unicon Financial Chief Executive Gajendra Nagpal said.
“FIIs have exposure in the Dubai markets. So they were selling their holdings in India. Domestic institutional investors gave some support to the market,” Mathew said.