Markets may stay choppy in holiday-shortened week ahead

New Delhi :Stock markets may see volatile trading sessions in a holiday-shortened week ahead amid derivative contracts expiry and would take cues from foreign investors’ investment trend and movement of the rupee, say experts.

Markets would remain closed on Friday for Bakri Id. “Though there’s no major data lined up this week, market

may remain volatile as traders will roll over and unwind their positions in futures & options (F&O) segment because of scheduled derivative expiry of September contracts on Thursday,” said Jayant Manglik, President, Retail Distribution, Religare Securities.

Further update on monsoon and currency move would also influence domestic bourses to some extent. “So, traders should keep an eye on them for further cues,” he added.

“Movement of the index in the near term will depend on crude oil prices, movement of the rupee against the dollar and global market sentiment. Market may remain volatile ahead of expiry of derivative contracts. RBI’s monetary policy review is scheduled for September 29, which will pave the way for market movement in the near term,” said Vivek Gupta, CMT Director Research, CapitalVia Global Research.

The BSE Sensex gained 608.7 points to 26,218.91 over the past week.

Since the beginning of the year, foreign portfolio investors (FPIs) have made a net investment of Rs 23,961 crore in equities and Rs 37,654 crore in debt markets.

“Going forward, with the US Fed event out of the way for now, investors’ focus will shift back to global economic growth challenges in general. In the case of Indian equities specifically, all eyes will now be on the next RBI monetary policy scheduled for September 29.

“However, in the immediate short term, market is expected to be volatile in the wake of the September 2015 series F&O expiry,” said Hitesh Agrawal – Head Research, Reliance Securities.