Mumbai: A wave of consolidation is likely to greet the Dalal Street this week as the bellwether Sensex, which regained the 10,000 level last week, is expected to retain the positive momentum, analysts say.
“Markets need to consolidate before they see any big rally. It would remain volatile and a sideways consolidation, with a bias towards the higher side is expected,” SMC Global Vice President Rajesh Jain said.
Analysts said that the domestic institutional investors may book profits they reaped last week.
“There will be no outright fall in the market. Some corrections are expected this week as investors resort to profit taking to cash in on last week’s counter rally,” Jain added.
The BSE Sensex gained over 1,082 points in the past week and closed at 10,048 points on Friday, while the National Stock Exchange’s Nifty index ended with a gain of 302 points at 3,108 points.
“The domestic markets are over heated and a slight downtrend is expected next week. The fall in the US markets on Friday, signals a likely correction here,” Taurus Mutual Fund Managing Director RK Gupta said.
On Friday, the US market ended in the negative zone with the Dow Jones Industrial Average dropping 148 points to 7,776 and the Standard & Poor’s 500 Index falling two per cent to 816 points.