The market is likely to remain volatile this week ahead of the expiry of

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near-month futures and option contracts. Financial stocks may see some action as parliament is set to clear few reforms in this sector. Experts say the dollar index, which has an inverse correlation with the stock market, is strengthening and this may trigger some worries for investors.

Angel Broking chief technical analyst Sandeep Wagle said, “The charts show the market is not following any clear pattern. We expect Nifty derivative contracts to settle at around 5,100 to 5,200 at expiry.”

“The bourses are likely to turn choppy this week. The expiry of derivative contracts and dollar index movement will be the main market drivers. The dollar index, which was falling for the past six months, is moving up steadily. This may be a negative sign for our market,” said Jaganatham Thunguntula, head of research at SMC Capitals.

According to Rabindranath of Asit C Mehta, market valuations are a concern. “Investors are worried on the valuation front. But the good thing for our market is that every time it dips, foreign buyers come forward with healthy buying. We think this trend may continue. For the week, the market is likely to remain volatile with no major downside as November futures and options contracts are going to expire this week.”

Alex K Mathews, head of research at Geojit BNP Paribas Financial Services, said, “The Nifty has a target of 5,185, which can be achieved before the November expiry. The put-call ratio is on rising mode and it is now at 1.6, which suggest more upside than weakness. A lot of banking, financial and insurance sector reforms are to be passed in this parliament session, which is going to help these sectors,” he said.

The rate of inflation jumped to 1.34 per cent for the month of October against 0.5 per cent a month ago. The BSE Sensex climbed 173.02 points, or 1.03 per cent, last week to close at 17,021.85. The Nifty index on the NSE gained 53.50 points, or 1.07 per cent, to end at 5,052.45.

Foreign institutional investors (FIIs) on Friday remained net sellers, pulling out investments worth Rs 334.30 crore from the market, according to the figures available at the market regulator Sebi website.

Put-call ratios of BRFL, Tata Power and Uco Bank in terms of open interest for the near-month expiry stood at 38, 8.93 and 2.78, respectively, reflecting bearish sentiment on these counters.