FII inflows, Fed rate, crude to guide market this week

Mumbai: Investors may remain cautious after the massive bull run over the past few weeks as the market could see profit booking at higher levels.

Positive global cues, comfortable inflation data, and increase in foreign fund flows have driven huge bull run in the Indian markets over the past few weeks.

However, according to experts, focus would be now on the crude oil as it may spike due to cut in production by Iran and Venezuela as sanctions are imposed. The rupee has appreciated with USD-INR moving close to the $69 mark after almost three months as the equity market sentiment remains bullish.

"A cautious approach is the best strategy to trade in Index at this juncture. We would advise investors to take breathe and have to watch further action in index or sustainability of the Nifty50 because of it's trading at around all-time high. There is a range of 11200-11450 where once we can wait for further action. The Relative Strength Index which is a gauge of 14-day continued to be in the overbought zone, keeping in this mind one could be cautious," said Debabrata Bhattacharjee, Head of Research, CapitalAim.

Investors will also be looking for current account numbers, which is expected on Monday. Analysts said on the global front one can keep an eye on Fed's Interest rate decision on Wednesday along with current account. Overhang on Brexit issues and OPEC's supply cut are likely to hit the domestic market in specific segments.

"Investors shall be careful in stock selection as it's very to get carried away when the momentum is so strong," Jagannadham Thunuguntla, Senioe VP and Head of Research (Wealth), Centrum Broking said.