Mumbai: The market may see sharp volatile trade during the truncated week as the exchanges will remain closed on Monday for voting in Mumbai and on Wednesday on account of Maharashtra Day.
Investors will be closely watching the global crude prices and rupee movement as well as the Q4 earnings from key companies like Ambuja Cements, Kotak Mahindra Bank, Britannia Industries, Dab-ur India, MRF, Tata Power and Hindustan Unilever slated for this week.
The institutional buying remained mixed, with FII inflows totalling $413 million for the past five days, while DII were net sellers to the tune of $119 million for the same period.
India VIX trading above levels of 21 is a clear indication of divergence in bull and bear sentiments.
According to derivative analysts, open interest is consistently reducing in the futures market given the already elevated levels and uncertainty on the election outcome. Status quo is expected to be maintained. And the market is likely to move either 2/3 per cent up or down from the current levels.
At the sectoral level, FMCG, capital goods and healthcare are seen having largely sideways moves with little volatility, while realty, auto, metal, power, mid-small caps are in a corrective mode with further downward pressure.
"Since the broader trend remains bullish, we continue to remain upbeat on the market as long as it holds 11,549 convincingly. On the higher side, 11,800 followed by 11,856 are the levels to watch out for. If we see any renewed buying interest in some of the heavyweight constituents, we would expect the index to hit fresh highs very soon. Till then, consolidation continues in the range of 11,856-11,549,” said Sam-eet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking.