Expect volatility, focus on global trends; analysts predict this week’s market sentiment

This week's stock market investors will primarily be focused on global trends and foreign fund movement and may experience volatility due to the monthly derivatives expiry because there are no significant local market-moving events scheduled, as per analysts.

The Nifty fell 42.05 points, or 0.22%, last week while the Sensex fell 131.56 points (0.21%). Global markets have recently been experiencing a trend of mediocrity. According to analysts, during the most recent rebound, domestic markets demonstrated resilience while the global indexes, particularly the US markets, were under pressure.

Participants will heed cues from the behaviour of the crude and currency markets once all important events have passed. Additionally, the monthly expiry of the futures contracts for the month of November would keep traders on their toes, said Ajit Mishra, VP - Research, Religare Broking Ltd.

Also Read: Sanjiv Bhasin stock picks for next week: Samvardhana Motherson, L&T....

The Federal Open Market Committee (FOMC) meeting minutes are scheduled for release this week, which will give the market more cues. Motilal Oswal Financial Services Ltd 's Siddhartha Khemka, Head of Retail Research, said.

In the absence of any cues, the market remained range-bound, and it will now seek guidance before the F&O expiry, according to Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd. The market is currently taking a breather after a protracted run-up, which means there is a good chance of an upside breakout. But in the larger market, we are witnessing profit-booking, he said.

Also Read: 1:1 bonus shares twice: Multibagger chemical stock turns ₹1 lakh to 10.68 crore in 20 years

Institutional flows will be significant in addition to F&O expiry because they have decreased over the past few trading sessions, he added.

"On the global front, the minutes of the US FOMC meeting will lead to some volatility in the global markets. Movement of the dollar index, US bond yields and crude oil prices will remain other critical factors to watch out for," Gour added.

The domestic market is anticipated to continue focusing on global trends in the absence of significant domestic triggers, according to Vinod Nair - Head of Research at Geojit Financial Services.

(With PTI inputs)