Domestic stock markets are expected to remain weak even after four days of continued decline. Global indices are mixed as US stocks have failed to hold onto gains. After the US president extended the US federal leader’s tenure by four years, US stocks saw a momentary surge on Monday. However, they closed weakly, led by tech stocks.

Most Asian stocks are trading flat early on Tuesday. SGX Nifty at 17,420 indicates that Nifty is likely to open a flat low note as Nifty futures on Monday closed at 17,435.

Analysts expect the market to remain volatile, due to F&O settlement week on the NSE. As foreign portfolio investors remain in sell mode, the market is unlikely to see a strong recovery in the near term, analysts said.

Overall, the market is expected to continue consolidating as valuations are rich as global indices keep markets volatile – inflation concerns have grabbed the headlines and the Fed is starting the phase-down program soon, said Siddhartha Khemka, Head of Retail Research, Motilal Oswal Financial Services Ltd.

Investors would also be monitoring the situation of Covid in Europe and its impact on economic activities. Thus, in the short term, the market could remain under pressure until new positive triggers emerge and the specific action to stocks is cleared. likely to continue, “he added.

All eyes are on the Fed debriefing for November 2-3, which takes place on Wednesday. Analysts fear this could indicate an acceleration in the reduction in bond purchases and an earlier-than-expected rate hike.

According to Santhosh Meena, FIIs are constantly selling in the Indian market because they feel valuations are stretched, but they still have a long-term bullish view on India.

Binod Modi, head of strategy at Reliance Securities, said: “Domestic stocks continue to look soft for now. Notably, the recent surge in the dollar index and the absence of any positive surprises from corporate earnings in the September quarter have weighed on investor sentiment in recent days. On the positive side, however, the key high-frequency economic indicators for October 21 remained optimistic and continue to reflect strong economic activity and sustainable earnings growth. “