New Delhi: In the absence of any major trigger on the domestic or global front, say analysts, Dalal Street is expected to see range-bound trading this week.

“Although Market As per broking house ICICI Direct, it is going up, looks like it is running out of steam as the indices are still moving in a firm range.

“In terms of valuations and also from the angle of risk-return trade-off, the domestic market looks slightly weaker and is likely to see some downside correction in the short term,” it adds.

Despite the overall growth, the domestic market is underperforming against most of its global peers, including China, which has seen a growth of 19% over the same period.

Avinash Gupta, Assistant Vice President (Research), Bonanza Portfolio, said, “Investors are cautious and the market may see sideways trading this week.

Analysts say the market may open on a negative note on Monday following negative global cues, though it may bounce back later due to fund inflows.

“Tracking weak US and European markets, Dalal Street may open with a negative bias on Monday. However, FIIs are still upbeat about India’s growth story and continued inflows will help the market bounce back,” said Alex Mathews, Head of Research, Geojit BNP Paribas.

Foreign institutional investors are positive on the domestic market and made a net investment of `5,590 crore in the local market only last week sharesAccording to SEBI data, their total investment so far in 2010 has gone up to `51,185 crore.

“Global benchmarks will be crucial to determine the direction of the domestic markets,” said Mr. Mathew.

On the domestic front, the rapid progress of monsoon continues to be the key factor for the market. The IIP data for June, which is due this week, will also be important and needs to be monitored.

Domestic markets recovered during the last week and both the indices hit their new 2010 highs as FIIs continued their buying spree. on a week to week basis, Sensex It closed nearly 276 points or 1.5% higher at 18,143.99.

On Friday, Wall Street also settled in the red on sluggish jobs market data and ineffective July retail sales data. The Dow Jones closed down 0.20% and the S&P 500 0.37%.