F&O expiry

Stocks wiped out early gains on Tuesday but closed marginally up. Lacklustre trading in global markets and absence of any domestic trigger hit sentiments.

Stocks fell sharply and Sensex broke a key support at 18,000 level on Monday amid a global flight to safety by equity investors as the domestic market entered the F&O expiry week.

After witnessing a week of sharp gains, the market is likely to be volatile this week ahead of the near-month futures and options expiry. Global cues, including developments in Japan and Portugal, and news regarding the political turmoil in the oil producing nations, may influence market sentiment.

Investors are likely to remain nervous this week ahead of the expiry of near-month futures and options contracts, due on Thursday, and in the runup to the Rail Budget as well as Union budget

The market on Thursday remained weak on the expiry of futures and options contracts dragged by rise in food inflation numbers and the recently announced rate hikes by the central bank.

The market is likely to remain choppy in the day-short trading week ahead of expiry of near-month futures and options (F&O) contracts.