Domestic markets are expected open on calm note on Monday, signals GIft Nifty. According to analysts, as most news (both positive and negative) are discounted, market awaits fresh cues. Till such time, benchmark indices will move in a narrow range and rise will be encountered with profit taking.

Dr Joseph Thomas, Head of Research, Emkay Wealth Management, said: “While fundamentally the markets remain good, some amount of profit booking could result in further decline in the coming weeks.”

Gift Nifty at 21,930 signals a gain of about 90 points as NIfty futures on Friday closed at 21,842. Most equity markets in Asia-Paicific region are shut due to Chinese New Year.

Arvinder Singh Nanda, Senior Vice President, of Master Capital Services Ltd, said the market will react to the global and domestic economic data, FII/DII investment pattern, crude oil inventories, ongoing quarterly earnings seasons, movement of the rupee against the dollar, trends in the global stock market.

“Some major economic data that could impact the market are the UK employment rate, inflation numbers, PII input data, GDP numbers, trade balance, US inflation, crude oil, Initial jobless claims, industrial production, Retail sales, building permits, Japan’s GDP and industrial production numbers, Eurozone Employment, GDP, industrial production and trade balance data. Domestic economic numbers will also be focused on such as Inflation data, Industrial production, trade balance, forex reserves.”

The long-short ratio fell further to 32.67 per cent as foreign portfolio investors (FPIs) built significant short positions in Index futures for the second consecutive day, said Ashwin Ramani, Derivatives Analyst, SAMCO Securities.

Strong put writing was observed at 21,500-strike in Nifty, he said adding the level of 21,500 also happens to be the strike where maximum put open interest is placed. “Breakdown below this level can trigger a fall until 21,200 levels. Nifty is likely to resume uptrend upon successful close above 22,000 levels,” he added.

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