Markets to open cautious on Monday

New Delhi: Analysts expect the markets to open cautious on Monday with a downward bias. Volatility will continue in the short-term - till the earnings season gets over - but they remain positive about the medium to long-term.

On the Nifty, 3410 is a crucial short-term support and the same on the BSE Sensex is at 11,570. The markets can go down to 11,200 levels if that is broken, feels Sumeet Rohra.

On the upside, though, Vijay Bhambwani's target level is at 3580 and on the downside he sees crucial supports at 3400 and 3580 levels.

If FII inflows for Friday are not too bad, then the markets will take this as a positive sign, feels Dipan Mehta whereas Rahul Mohindar expects a flat to weak opening on Monday morning.

Vijay Bhambwani, Technical analyst

Initial nervousness on Monday

I expect some kind of initial nervousness on Monday morning but the markets will stabilize later. They are likely to open with a gap down on Monday. The short-term is expected to be very volatile but in the medium-term the outlook remains positive.

Supports at 3400 and 3380; resistance at 3580

On the Nifty I would watch out for 3400 to 3380 as two crucial support levels. On the upside the next target on the Nifty would be 3580.

Sumeet Rohra, Antique Stock Broking

Rumours led to profit booking

Market has seen a bout of profit booking on Friday driven by rumours and speculation of SEBI banning P-Notes and a ban on eleven FIIs, which created some volatility.

Mid cap index to outperform

Markets had a very good run, it went up one-way, and so this correction was healthy. It's worth looking at B-group stocks because mid cap index will outperform the indices going forward.

If 11,570 is broken markets could dip to 11,200 levels

The choppiness will continue next week also with the coming of the results season. Crucial level to watch out for will be 11,570. If it violates that then we could be heading down to 11,200.

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Cues to watch out for: global markets and FII inflows

Market now will depend on global cues. If the US markets are strong, then it will open strong or if the US markets are flattish then market will look at FII figures. One should be a little wary on the broader markets.

Rahul Mohindar, Technical analyst

3410 is a crucial short-term support

We expect short-term weakness with 3410 as a crucial short-term support. If this support is violated then market will get into an immediate downtrend. On Nifty we are expecting short-term resistance at 3500 levels.

Expect a flat to weak opening

We expect a flat to weak opening. The trend of the week seems to be sideways.

Dipan Mehta, Member, NSE

FII inflows is a key factor

One needs to watch out for FII figures, which is a key factor. So long as they are positive, local investors and speculators will be placing their bets on the upside.

Markets will trade between 10% plus or minus range from 12,000

Markets will trade between 10% plus or minus range from 12,000. On the higher side they can touch 13,200 and on the lower side it will be 10,800.

Leveraged positions are very high on the futures side

It is very important from sentiment point of view that FIIs don’t turn negative and if mutual funds buying declines then there could be real problem because the leveraged positions are very high on the futures side.