FIIs net bought more than Rs 9,500 crore worth of shares in week ended April 5, taking total net buying to nearly Rs 58,000 crore since February
The ongoing week started on a weak note but that will not derail overall positive momentum and major correction is unlikely given FII inflow support, experts said.
Experts further said market participants should prepare themselves for volatility as many key events are lined up in this week.
Participants will be closely watching the first phase of general elections, which is scheduled to start from April 11. Besides, IT major Infosys and TCS will announce their numbers on April 12. On macroeconomic front, they also will be eyeing IIP number and CPI inflation data that will be released on April 12.
"We expect Nifty to consolidation within 11,450-11,800 while volatility will remain high as participants would react to list of events and data during the week," Jayant Manglik, President at Religare Broking told Moneycontrol.
"We strongly advocate focusing more on stock selection and trade management aspects. Also, keep a close eye on global markets for cues," he said.
Among the events, the more important ones to look at would be the first phase of general elections and then earnings of Infosys and TCS, experts said.
"Near term implication of IIP and CPI to be announced next week would be of less importance as next reduction in interest rate if any would not be happening before August policy of RBI," Shailendra Kumar, Chief Investment Officer at Narnolia Financial Advisors said.
"Also election will have more impact on the market this quarter than the quarterly results. But Q4FY19 result would be important to ascertain which sector market will favour going ahead," he added.
He said the market is entering into a very decisive zone now.
"After making a fresh the all-time high of 11,761, Nifty50 is showing some sign of nervousness. Deteriorating consumption trend in the economy is a fundamental negative for the market but at the same time improving fortunes of the banking sector is a strong positive," he added.
FIIs net bought more than Rs 9,500 crore worth of shares in the week ended April 5, taking total net buying to nearly Rs 58,000 crore since February.
"Domestic market is outperforming global markets on account of improved liquidity from FIIs and DIIs due to dovish global central policies and expectation of political stability. We expect this positive momentum to continue supported by higher inflows from FIIs and reduction in cost of equity, being the fastest growing major economy in the world," Vinod Nair, Head of Research at Geojit Financial Services told Moneycontrol.
According to him, however, the global factors that can impact negatively on this expectation are the global economic slowdown, delay in US-China deal, structural issue in EU and post effect of Brexit.
The domestic negative factors could be a hung parliament and NPA issue impacting private spending, he said.
