Choppy sessions are likely to mark trading this week-- truncated by two holidays on Monday and Friday -- but markets are expected to notch up some gains before ushering in the new year, analysts have said.
Dalal Street is expected to open a notch higher tomorrow on the back of strong Asian and European cues when markets open after four-day long holiday. Japan's Nikkei ended 1.33 per cent higher on Monday, while Shanghai closed up 1.51 per cent.
In Europe, CAC 40 of Paris was trading with gains of 0.76 per cent. However, brokers said bourses would be sluggish before the expiry of the futures contract on December 31.
"The market would see choppy trading towards Thursday as it stares at the expiry of derivatives contract. We expect no expansion in position in futures trade this week," Bonanza Portfolio assistant vice president Avinash Gupta said. This week Nifty can touch 5,300 points, he added.
Ashika Stock Brokers Research head Paras Bothra said, "The overall market sentiment is positive. The week will begin on a good note on the back of the firming trend in the global markets.
"As the week progresses some choppy movement might come in and there would be sideways movement. Last week, the benchmark Sensex on the Bombay Stock Exchange ended with gains of 3.8 per cent at 17,360.15 points, the highest weekly gain in six weeks.
The National Stock Exchange's Nifty index was up 3.82 per cent at 5,178.40. The benchmark Sensex has gained nearly 80 per cent in 2009 and is on the way to chart out the best yearly gains since 1991.
Global markets remained positive last week with the US markets settling with gains of near one per cent on Thursday.
Markets were closed on Friday on account of Christmas.
The Dow Jones Industrial Average ended up 0.51 per cent at 10,520.10 and the S&P 500 by 0.53 per cent to 1,126.48.
Nasdaq closed 0.71 per cent higher at 2,285.69. Analysts said foreign fund flow to Indian markets would continue this week till the time global markets are steady.
"FII flows have been robust in the past week and so far in 2009. Till the global markets are in strong footing, FIIs will continue to pump in money," Bothra said.
Foreign institutional investors have put in money in shares worth Rs 2,027 crore (Rs 20.27 billion) last week. So far this year, the funds have put in Rs 81,874 crore (Rs 818.74 billion) in the Indian market.
Image: The Bombay Stock Exchange
