FIIs’ move, global trends to dictate market trends this week: Analysts

New Delhi: Stock market participants would track global trends and foreign investors’ trading activity in a holiday-shortened week ahead, amid lack of any major domestic trigger in sight, analysts said.

Equity markets will remain closed on Wednesday for Christmas.

“Looking ahead, no major events are scheduled. However, a few global economic indicators will be pivotal in shaping the market direction, including the US bond yields, dollar index performance, initial jobless claims, new home

sales data.

“Amid heightened volatility and persistent FIIs (Foreign Institutional Investors) selling pressure, investors are likely to adopt a cautious stance. Despite recent weakness, the market outlook remains cautiously optimistic. However, relentless selling by FIIs has added to market pressure,” Pravesh Gour, Senior Technical Analyst, Swastika Investmart Limited,

said.

Last week, the BSE benchmark tanked 4,091.53 points or 4.98 per cent, and the Nifty slumped 1,180.8 points or 4.76 per cent.

“The sudden change in FII strategy from buying to selling has impacted markets,” V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said.

The rupee-dollar trend and movement of global oil benchmark Brent crude will also be crucial in dictating the

market.