Markets likely to be dull in last week of 2010

After undergoing dull trading session in the Christmas week, Dalal Street is likely to remain range-bound in the last week of the year with dearth of fresh buying by the FIIs and retail investors, feel experts.

In a lacklustre trade last week, the Bombay Stock Exchange benchmark Sensex witnessed a surge of nearly 209 points or 1.05 per cent to close at 20,073.66.

Market observers feel that the pattern for the remaining trading sessions of December may not deviate from what one has seen in the past few days as there is lack of hot money in the street.

"Holiday mood has set in the market which is why the Dalal Street is likely to see range-bound trading and will see a significant movement only after the FIIs will get fresh allocations in the new year," Ashika Stock Brokers research head Paras Bothra said.

Analysts pointed out that lack of any major domestic and global cues may also make the market move sideways in the last week of the calendar year.

"No major events are lined up over the next few days before the third quarter results start trickling in. So, don't expect the market to do much in the interim period unless there is a major development - either in India or abroad," IIFL Head of Research Amar Ambani said.

But the marketmen also feel that despite the range-bound trading, the stock markets will end the year on a positive note.

They also said that the market may gain some momentum post the F&O expiry next week.

"Since we will have the F&O expiry next week, there is a chance that one may get to see some action in the market," Ambani said.