The
Nifty, which managed to reclaim its level 0f 7,800-7,850 this past week, will
be watched keenly as volatility is expected to increase ahead of the expiry of
November futures & options contracts due on Thursday, November 26.
Parliament’s upcoming winter
session and the derivatives’ expiry are set to rock the equity markets during
next week’s trading session. As per market observers, with the end of the
earnings season, investors will be glued to political developments to see whether
the government is able to pass key economic legislation during the winter
session that begins on November 26 and will run till December 23.
Markets will now look
forward to political cues such as the passing of key bills and the government’s
stance towards the opposition in ensuring the winter session is not wasted,
Last week, the government’s efforts to reach out to the opposition before the
crucial winter session to get the Goods and Services Tax (GST) bill passed
cheered the equity markets.
Other than the winter session,
there were concerns over an extended rate hikes in the US The US Fed held an
'unscheduled' meet on Monday. The meet precedes the Federal Reserve policy meet
in December, when a rate hike is expected to be announced.
The US central bank has given signs that it might go in for a series of gradual
rate hikes starting from December.
However, in the short term, higher interest rates in the US are expected to
lead away FPIs (Foreign Portfolio Investors) from emerging markets such as India.
Besides a US rate hike, the derivatives expiry slated for Thursday has caused
some nervousness, as Securities and Exchange Board of India (SEBI) has reduced
the lot size in futures and options (F&O) segment which has resulted in
lower volumes.
This has indirectly rubbed on the trading dynamics of the cash segment.
"We expect markets to continue to remain under pressure
