Mumbai: Dalal Street is likely to wait for cues from the global markets and movement of crude oil prices, to chalk out its direction amid lack of any key triggers from the domestic front, analysts say.
“Market will be looking at US market and crude prices for its next direction. There are no trigger in the domestic market as everything has been discounted,” Kejriwal Research and Investment Services (KRIS) Director Arun Kejriwal said.
Analysts believe a recovery in the equity markets may be possible from here on has crude oil prices have softened and even gold has fallen below $870, which was considered as support thus giving negative returns for the week.
“Going forward, commodity prices shall be correcting and thus inflation in most of the economies specially in emerging countries should start topping out. Slow down in commodities may also move funds to equities,” Bonanza Portfolio President Research P K Agarwal said.
BSE benchmark index Sensex gained over 500 points in the past week and settled at 15,167.82 points on Friday, while the 50-share CNX Nifty index had ended up marginally at 4,529.50.
“This week markets, which would have only four trading sessions due to holiday on Independence Day, are expected to remain firm and continue with its upward movement,” Agarwal said.
Echoing his sentiment,domestic brokerage firm SMC Global Vice President Rajesh Jain said: “The market is likely to go up this week and may witness a rally in the beginning as the market has already discounted all negative cues,”
Even the Index of Industrial Production (IIP) data, which is expected this week would not impact the sentiments much, believes analysts.