Domestic markets are likely to open on negative on Monday amid mixed global cues. Analysts expect the market to remain volatile this week due to impending monthly settlement of derivative contracts.

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Stocks that will see action on November 21, 2022
Steel stocks, RHI Magnesita, IEX, CDSL, Aarti Industries, Deepak Fertilisers, Tata Motors, Dr Reddy’s Lab, Policybazaar, Aurobindo Pharma, Strides Arcolab, Natural Capsules, Ashoka Buildcon, 3i Infotech, BEL, BPCL, Engineers India, Jindal Stainless, ZF Steering and Zomato, REC, Kanoria Chem

SGX Nifty at 18,256 indicates a gap down opening of about 100 points for NIfty, as Nifty futures on Friday closed at 18,356

Aggressive buying by FPIs

Analysts expect the market to continue range-bound in this consolidation phase. Foriegn portfolio investors turned agressive buyers in November so far, though they slow down their purchase in the last couple of days. The next round of rally depends on their strategy, they added.

FPI buying has picked up smartly in November following the flat FPI activity in October. According to NSDL data, the total FPI buying in November till is ₹30,384 crore. “FPI buying in IT which started picking up in the second half of October has gathered momentum in November. FPIs have been buying in autos and telecom, too, said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

“FPI buying is unlikely to turn very aggressive, going forward. High valuations in India are a headwind. Valuations in markets like China, S Korea and Taiwan are very attractive now. So, more FPI money is likely to move to these markets.” he cautioned.

According to Pravesh Gour, Senior Technical Analyst, Swastika Investmart, apart from F&O expiry, institutional flows will be important, which have dried up in the last couple of trading sessions.

Asian stocks in red

Joseph Thomas, Head of Research, Emkay Wealth Management, said: What that markets would look forward to would be the developments Europe and the statements from leading Fed officials on their future stance.

Major Asia-Pacific stocks are down in early deal on Monday led by Korea’s Kospi, which slid over one per cent. Others have fallen between 0.02 and 1 per cent.

“Though price pressures have ebbed, the retail inflation numbers are too high for the comfort of the central banks, especially in the US and India,” he said and added: “At the same time, the prominent view is that probably inflation has peaked and that central banks might still hike rates but the quantum of hikes would be more moderate”.

Some signs of sluggishness in growth could set in soon due to the aggressive rate action in the last few months. Markets would focus on the actual numbers to get a sense of the trajectory of inflation and official policy as well, he further said.