‘December quarter earnings, global trends to guide market this week’

New Delhi: Trading in the equity market in the holiday-shortened week ahead will be largely guided by the ongoing December quarter earnings, global trends and foreign fund movement, analysts

said.

Dalal Street also may face volatility amid monthly derivatives expiry, they added.

“This week will be a shortened week because the market will be closed on Thursday in honour of Republic Day; thus, the January month F&O expiry is scheduled for Wednesday, which may cause market volatility.

“Global cues are also volatile and lack direction, but any major swing in the global market may also impact our markets. FIIs’ selling has slowed down in the last few days following aggressive selling in the first half of this month, but institutional flows will remain crucial for the direction of the market.

Q3 earning season is going on, therefore stock and sector-specific moves will continue,” said Santosh Meena, Head of Research, Swastika Investmart Ltd.

On the quarterly results front, Axis Bank, Maruti Suzuki India, Bajaj Auto, DLF, Tata Motors, Bajaj Finance and Vedanta will announce their earnings this week.

“Market is likely to remain in a consolidative range with stock-specific action on Q3 FY23 results and upcoming Budget,” said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Investors would also track trading activity of Foreign Institutional Investors (FIIs), movement of rupee and Brent crude oil.