Dalal Street may witness a corrective bounce back this week buoyed by a recovery in the US markets as analysts feel traders are waiting on the sidelines to enter the market shrugging off fresh concerns over the world recovery.
"Markets are ready for a corrective bounce back. It fell steeply in the last few days and now some upside can be seen as traders are willing to enter the market at this levels," Unicon Financial Chief Executive Gajendra Nagpal said.
Marketmen said the signal for a rise has already come in the market as the Sensex regained 125 points or 0.79 per cent on Saturday to close at 15,915.65 points.
On Friday, shrugging off the fears of Europe's sovereign debt problems, the US markets ended in the green, making traders optimistic about a possible bounce back rally. The optimism has been driven by a possible EU action on these debt problems.
"It seems the US markets have found its support. The markets have have fallen very sharply in the past few sessions and no further fall is expected this week as Asian cues are expected to be positive on Monday," SMC Global Vice-President Rajesh Jain said.
However, traders cautioned that with the strengthening of US dollar, foreign investors would continue to pull out funds which could put some pressure on the spot market.
"Domestic institutions would invest next week. It is doubtful whether the market would be able to sustain upside as rising dollar would keep it volatile," Taurus Mutual Fund Managing Director R K Gupta said.
