Selling triggers: market may trade sideways this week

The market is expected to trade sideways next week due to the absence of strong buying or selling triggers.
Selling triggers: market may trade sideways this week

NEW DELHI: After two weeks of strong gains, India’s equity market entered into a consolidation last week with the benchmark indices - BSE Sensex and NSE Nifty- barely managing to keep the momentum alive.

With no major trigger to support the rally seen after the formation of a coalition government and the RBI keeping the key interest rates unchanged, investors would now track macroeconomic developments and global cues for future guidance.

“The market is expected to trade sideways next week due to the absence of strong buying or selling triggers. While the underlying sentiment remains bullish, dips might attract opportunistic buying, which could support the market.

However, strong rallies may be capped by profit booking,” said Pravesh Gour, Senior Technical Analyst at Swastika Investmart. Gour added that this week, sector-specific movements are anticipated amid budget-related buzz. “Key factors to watch include the progress of the monsoon, which will be closely monitored for its near-term impact on investor confidence.

The upcoming GST meeting may result in rate adjustments in certain sectors, potentially influencing market direction. Investors will also keep a close eye on FII and DII fund flows, as well as crude oil prices, to gauge overall sentiment,” he said. The Sensex and Nifty indices both posted minor gains of 0.2% last week, marking their third consecutive week of growth.

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