The Indian equity market is likely to be influenced mainly by global cues and foreign fund trading activity this week amid lack of any major trigger at home, several analysts said. They also believe the rupee and crude oil movement may impact the markets trend.

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In absence of any major event, cues from the global indices, especially the US, would remain on participants’ radar, Ajit Mishra, VP - Technical Research, Religare Broking said in his expectations.

Apart from the feeble global cues, continued profit taking in the banking index may result in further decline and Nifty could test the 18,000-18,100 zone soon, the analyst at Religare Broking added.

“On the higher side, 18,500-18,750 would act as hurdles. Since all the sectors are largely trading in tandem with the benchmark, participants should plan their exits in profitable trades and stay selective for fresh positions.” Mishra further stated in his comment.

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Similarly, according to Santosh Meena, Head of Research, Swastika Investmart, “This week won't bring any significant cues, so we may see a tussle between bulls and bears. Because the US market is currently experiencing the second wave of selling following the Federal Open Market Committee (FOMC) meeting, its direction will continue to be crucial.”

"Due to the fact that FIIs were net sellers for a significant portion of December, institutional flows will be another crucial trigger," Meena also said in his comments.

Past week, the Sensex declined 843.86 points or 1.36 per cent, while the Nifty shed 227.60 points or 1.23 per cent.

"The Fed startled the market by maintaining its hawkish tone, as investors were expecting a softer approach after the release of better-than-expected inflation numbers. Following the Fed, BoE and ECB raised their interest rate by 50 bps while maintaining their hawkish stance in combating inflation," said Vinod Nair, Head of Research at Geojit Financial Services.

Also Read: Foreign investors inject Rs 10,555 cr in Indian markets in December so far on moderating US inflation

Lack of major triggers will push the domestic market to follow its global peers this week, Nair added.

"Markets are likely to remain in consolidative range due to lack of triggers in the near-term. Also, lower participation from institutional investors due to upcoming year-end holidays would keep the markets lackluster. Though investors would keep an eye on US home sales and GDP (QoQ) numbers to be released this week," Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd, said.