Dalal St likely to be range-bound this week: Analysts
Dalal Street is expected to see a range-bound trading this week in the absence of any major trigger either on the domestic or global front, say analysts.business Updated: Aug 08, 2010 12:36 IST
Dalal Street is expected to see a range-bound trading this week in the absence of any major trigger either on the domestic or global front, say analysts.
"Though the market has been moving up it seems to be running out of steam as the indices are still moving within a strong range," according to brokerage house ICICI Direct.
"In terms of valuation and from the angle of risk-return trade-off also, the domestic market is looking slightly vulnerable and is likely to see some downward correction in the short-term," it adds.
Despite the overall rise, the domestic market has been under-performing against most of its global peers, including China, which has seen 19 per cent rise during the same time.
"Investors are cautious and the market is likely to see a side-way trading this week," Bonanza Portfolio assistant vice-president for research Avinash Gupta said.
Analysts further say following the negative global cues, the market may open with negative bias on Monday, however, it may bounce back later on fund inflow.
"Tracking the weak US and European markets, the Dalal Street may open with a negative bias on Monday. However, FIIs are still bullish about the India growth story and a sustained inflow will help the market to bounce-back," Geojit BNP Paribas research head Alex Mathews said.
Foreign institutional investors are positive on the domestic market and last week itself they infused a net of Rs 5,590 crore in local stocks, taking their total investment so far in 2010 to Rs 51,185 crore (USD 11.18 billion), as per the data with the market regulator Sebi.