Profit-booking could drag markets this week: Analysts
Greek Finance Minister Evangelos Venizelos said that measures were vital to the country's very economic survival.
After registering gains for the sixth consecutive week, Indian indices are expected to see some correction this week with investors taking home profits, say analysts.
"Stock market is due for a correction. This week is a trend decider as we will be watching whether traders roll short position to March or not," CNI Research CMD Kishore Ostwal said.
Markets are expected to open lower on Monday taking cues from overseas bourses, including the US stock market, which closed with losses on Friday.
"Some profit booking may happen," Angel Broking said in a report.
Analysts feel the rally in the market has been too sharp to sustain much longer and investors should utilise the opportunity to book profits.
This week, focus is likely to remain on third-quarter earnings. Among blue-chip companies, Coal India, SBI, Tata Motors and Cipla will declare their December quarter results.
On the macro front, release of monthly inflation data for January, scheduled for February 14, is eagerly awaited.
Globally, the outcome of ongoing negotiations on Greece bailout package will be keenly watched.
Recovery in the stock market was mainly a correction of the excessive fall last year, traders added.
They said there are some positive trends that can still prolong the recovery in the market. The rupee has recovered from its lows and overseas investors have shown renewed buying interest for the Indian stocks.
Foreign Institutional Investors (FIIs), the main market driver in the recent strong rally since start of the current calender year, bought shares worth Rs 3,893.62 crore during the week, including the provisional figure of February 10.
The BSE benchmark Sensex continued has surged over 14 per cent so far this year.
"Cautious approach is recommended as market has become highly volatile. Amicable solution to the Greece debt problem will act as a positive trigger for global markets. On the domestic front, impending elections and the resultant anticipation of election winners will influence market sentiments," Bonanza Portfolio Research Analyst Shanu Goel said.