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| Markets to remain volatile with negative bias |
| Press Trust Of India / Mumbai Dec 07, 2009, 00:33 IST |
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Dalal Street is likely to remain volatile with a downward bias this week and will continue to take directions from the global markets, say analysts.
“Trading will be highly volatile this week and take cues from global markets. Although the longer-term trend remains positive, short-term investors should book profits at the current levels,” SMC Global Vice-President Rajesh Jain said.
Marketmen also said profit-booking would continue at the higher levels while some buying may emerge as and when the market falls.
“The market would move in the sideways zone. Overall there is a negative bias and phases of correction at every highs and consolidation would creep in as and when the market is at highs or lows,” Geojit BNP Paribas Financial Services Research Head Alex Mathews said.
Echoing similar views, Ashika Stock Brokers Research Head Paras Bothra said, “the domestic market would follow global cues and trade mostly in the negative terrain. Overall, we are going to have a weak market this week.”
On Friday, the BSE Sensex lost over 84 points and closed at 17,101.54 points, while the NSE Nifty settled down 23 points at 5,108.90 points.
However, on a week on week basis, the index moved up 2.8 per cent, after the news of a robust economic growth in Q2 and accelerating automobile sales number in November brought buyers to the streets.
Analysts feel foreign institutional investors will pull out money from the domestic markets this week as they will book profits as the holiday season sets in in the West.
During the past week FIIs bought over Rs 1,900 crore in equities. “FII selling is expected this week. FIIs generally book profits ahead of Christmas and so our markets might witness a correction,” Mathews said.
The economy grew unexpectedly strong, clocking 7.9 per cent in the second quarter ended September, giving hope that the country could return to over eight per cent growth trajectory in the near future. Further, the US unemployment rate unexpectedly declined to 10 per cent in November indicating that the labour market is slowly improving. The November jobless rate slipped in November from a 26-year-high of 10.2 per cent in October.
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