Indian equity markets are likely to remain range-bound in the coming sessions, influenced by mixed global cues and a lack of significant domestic triggers, according to market analysts. The benchmark indices, which have been consolidating in a narrow band, may continue to exhibit similar behavior in the near term.
Global Factors Weigh on Sentiment
Investors are closely monitoring developments in global markets, particularly the US Federal Reserve's monetary policy stance and geopolitical tensions. The uncertainty surrounding interest rate decisions and inflation data has kept market participants on edge. Additionally, fluctuations in crude oil prices and the strength of the US dollar are adding to the cautious mood.
Domestic Triggers Absent
On the domestic front, there are no major economic data releases or corporate earnings scheduled for the week, which could provide direction. The lack of fresh catalysts has led to a wait-and-watch approach among traders. Sector-wise, banking and IT stocks may see some movement based on global trends, while auto and pharma sectors could remain subdued.
Technical analysts suggest that the Nifty 50 index is likely to find support at the 17,800-17,900 level, while resistance is expected around 18,200-18,300. A breakout from this range would require a strong trigger, either positive or negative.
FII and DII Activity
Foreign institutional investors (FIIs) have been net sellers in recent sessions, while domestic institutional investors (DIIs) have provided some support. The trend of FII outflows is likely to continue if global risk appetite remains low. However, any positive surprise in global cues could reverse this flow.
Overall, the market is expected to trade in a tight range with a negative bias, awaiting clearer signals from global markets and domestic policy developments. Investors are advised to remain cautious and focus on stock-specific opportunities.
