Profit booking, volatility likely

The domestic market could witness bout of volatility in F&O expiry week even as investors would be closely watching foreign fund activity, the global sentiments as well as key macroeconomic numbers to be released this week.

In the past week, the market momentum was positive, however, analysts are expecting that going forward there will be profit-booking at the higher levels.

"We may see further profit taking in the index and that could cascade on the broader front too. In case of decline, 10,35010,250 zone would act as cushion,” Jayant Manglik, President Retail Distribution, Religare Broking Ltd. said.

According to Manglik, private banks, energy and select infra stocks should be preferred for fresh longs while auto, metal and media pack may continue to underperform.

Technically the Nifty formed a bearish candle for the second straight session on Friday, indicating some slowdown in momentum.

"We think this is a price wise correction which is due and is of course needed to lighten up and push out the weak money. Point of inflection for the Nifty is seen at 11320 11280. The Trend is up and intact,” said Mustafa Nadeem, CEO, Epic Research.

"We are looking at some consolidations in the market in a small range. It will be important to see the rollover numbers of the index and blue-chip stocks that are leading the rally. Any divergence over there shall act as a warning signal," he said.

In the derivative markets, there is long build up in the Nifty Futures, while short covering was seen in the Bank Nifty Futures and put writing at 11300-11500 level and FIIs' buying in the Index futures segment was also seen.