Apart from that, stocks exchanges will remain close on Monday due to the Maha Shivratri and there will be only four trading session for the week. This will be the crucial week for the Indian markets as, we had a poor last week. On Thursday we also have a settlement day and indices are likely to remain volatile throughout the week, said a dealer in the market.
Last Friday, last trading day of previous week, the 30-share Sensex of Bombay Stock Exchange (BSE) lost 199.42 points or 2.21% to close the day at 8,843.21 points. The broader S&P CNX Nifty of National Stock Exchange (NSE) was down by 52.90 points or 1.90% to end the day at 2,736.45 points.
An analyst from the leading broking house said, Domestic markets are looking for some positive cues, but pressure from the international markets is forcing the benchmark indices to remain under pressure. Apart from that, in the last few days we have witnessed huge short covering in the markets, which is likely to continue in the coming week too, on the back of expiry of derivatives contract.
Also lack of participation from the foreign institutional investors (FII) is a factor, which can have adverse affect in the Indian markets. Not only FII who are currently not performing too much in the market. But dipping volumes is also a major spot to look. Dipping volumes suggest that, retail investors are not participating in the market which is creating further liquidity problems in the market, said an analyst.
Some analyst also feel that, in the next week we can even witness Nifty at 2,500 levels as the weak international cues are weighing down on Indian markets. However some rate cut from the central bank might have give positive boost to the ailing market.