After scoring handsome gains in the last three days, Indian stock markets are likely to move in a narrow range with a negative bias. With lack of major clues, domestic markets are likely to remain lacklustre, said analysts.

Rahul Sharma, Co-Owner Equity 99 advisors, said, “The upward move is expected to continue unless there is any negative news affecting markets.”

“However, the Omicron tally has been rising at a very fast pace across globe with US reporting more than 10 lakh cases on Monday. Covid cases are also on the rise in India. Investors are advised to be cautious and should not over invest in short term,” he cautioned.

SGX Nifty at 17,817 indicates that Nifty is likely to see a gap-down opening of 20-30 points. Most Asian markets are trading flat and remain lacklustre. However, Korean stocks tanked over one per cent in early deal on Wednesday. After opening firmly, the US stocks closed with a mixed note on Tuesday as Nasdaq slumped over a per cent, even as Dow closed 0.6 per cent higher and S&P 500 ended flat.

As FPIs turned net buyers for the third straight day, analysts are hopeful the trend is likely to continue. On Tuesday, they bought shares worth ₹1,273.89 crore in the cash segment.

Prashanth Tapse, Vice President (Research), Mehta Equities, said, “The risk-on mood prevailed at Dalal Street despite elevated US bond yields, a modest USD strength, continuous surge in new Covid-19 cases and a hawkish Fed backdrop.”

However, according to Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, there could be bouts of volatility going ahead as concerns over rising inflation, higher interest rate scenario and increasing cases of Omicron variant would keep investors on the edge.

“As long as the index is trading above 17,700, the chances of it hitting 17,850-17,890 levels would turn bright. However, below 17,700, a strong possibility of a quick intraday correction up to 17,625-17,580 is not ruled out,” he added.

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