Two major events - the RBI's Monetary Policy and the US Federal Reserve Open Market Committee meet are now behind us and hence there are not many cues.
The results season is also drawing to a close, with a few major corporate, including Hindalco and Bhel, yet to declare their results.
The current week has not been good for equity markets, particularly banking stocks. The RBI decided to hike rates, which took markets by surprise. Banking stocks fell sharply as a result with the Bank Nifty seeing levels last seen in the month of Oct. In fact, stocks like ICICI Bank and some other PSU banks dipped to levels not seen since Sept 2013.
In fact, the Sensex hit the lowest levels since Nov 2013.
Going ahead markets are likely to be range bound with a negative bias in the absence of any major triggers. Dealers say that this would be a good opportunity to buy selectively in high quality stocks, including those from the banking sector.
It's just a few months away from the general elections and markets are pinning their hopes on a Modi led NDA government at the centre, which should be a good outcome for the stock market. With volatility likely to draw to a close in the absence of major triggers, the market may see a sell on rally and buy on dips kind of situation.
Individual stocks like ACC, State Bank of India and others may react to their numbers. Overall, expect a decline across the globe and in India to prevail next week, which should be a buying opportunity.