Domestic markets continue to vacillate around current levels despite positive global cues. Overnight, the US stocks bounced back strongly despite inflation concern. As FIIs continued to remain net sellers, bulls have no strength to push the markets up, said market experts. However, there are enough domestic hands to support the market at bottom levels, they said. While benchmark indices will move in a range, action will be on select stocks and sectors, said marketmen.

According exchanges' provisional data, FPIs were net sellers to the tune of ₹1,637.46 crore on Thursday.

According to analysts, as there are no triggers from domestic front, global trends will anchor our markets too. “The biggest concern is the rising US inflation, which could push to the Federal Reserve to take a hard look on liquidity.” Any unexpected tightening move could hurt global markets, including India, they added.

Though SGX Nifty at 15,975 currently signals positive opening for Indian stocks, lack of follow-up buying could keep the markets down said analysts. Equities across Asia-Pacific region are in the green, by gaining 0.6-1.4 per cent

The negativity was expected today as the global markets were weak, and FIIs too had formed bearish positions in derivatives segment in last couple of sessions, said Ruchit Jain, Trading Strategist, 5paisa.com. “Until there are clear signs of a directional move, one should trade with stock specific approach and avoid aggressive trades in the index,” he cautioned.

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd, said going ahead, market is likely to continue with its consolidation given weak global cues, persistent FII selling and last leg of earnings season. Investors would now await clues from US Fed as to how soon it would start hiking interest rates.

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