Action may shift to second-line mid-cap stocks THE market is likely to remain in

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a tight range-bound mode with a positive bias this week due to lack of negative triggers.

Investors are likely to follow the July inflation numbers due on Monday while US factory output numbers may sway sentiments on the global front.

Abbas Merchant, assistant vice-president for research at Jaypee Capital Services, said: "We are cautiously positive on the market. Global numbers such as US industrial output numbers and domestic cues, including monthly inflation data, may influence the market for a while if there is any dramatic change in these figures. Nifty may find a comfortable support between 5,350 and 5,400 levels."

Merchant felt capital goods and media stocks could continue to perform well this week.

According to a median estimate of 21 analysts by Bloomberg, the month ly inflation is likely to arrive at 10.40 per cent for July, down from 10.55 per cent in the previous month.

"We have gone through primary articles and food inflation numbers. Manufacturing numbers are up. We expect the monthly inflation for July to be between 10.20 per cent and 10.40 per cent," Saugata Bhattacharya, vice-president for business and economic research at Axis Bank, told Financial Chronicle.

The factory output numbers for June dropped steeply to 7.10 per cent compared with 11.34 per cent in the previous month. The BSE Sensex inched up 23.04 points, or 0.13 per cent, last week to end at 18,167.03. The 50-stock index rose 12.85 points, or 0.24 per cent, to 5,452.10.

"The market may remain in a tight range-bound mode next week. Investors are shifting funds from index trading to second line mid-cap and small-cap stocks.

Figures on the US economy may not hurt domestic sentiments as our market has already discounted weak US triggers," said Alex K Mathew, head of research at Geojit BNP Paribas. "On the other hand, any drop in the Japanese market on a rise in yendollar exchange rate may have an impact on morning trade. In fact, the Japanese government is likely to talk on the rise in exchange rates this week as it is hurting Japanese exporters."

Mathew said crude prices have weakened in the past weak, which helped the Dollar Index, a gauge of six major world currencies, rise sharply last week. into equity markets.

Generally, when dollar index declines foreign institutional investors brings money into the equities markets.

The put-call ratios of Asian Paint, Federal Bank, SBI, Tata Chemicals and DR Reddy for the near-month expiry, on Friday, stood 8, 1.17, 1.33, 1.17, respectively, reflecting bearish sentiments on the counters.