Small investors should be cautious in Stock markets for the current week. The Indian stock markets have been falling due to selling pressure. Mid-cap stocks have also reacted sharply. BSE Sensex lost nearly 3.7% as traders reduced their positions.

Small investors should stay away for some time from the stock markets. There may be some opportunity at lower levels in some select counters. Investors should only buy in those counters if they can hold on for some time. The expiry for November contracts for F&O is also approaching. So, the selling pressure could be higher.

It will not be a good idea to trade as intraday in stock markets for next few trading sessions as the markets are looking weak. There may be some amount of fresh buying at lower levels. Technical analysts expect NSE Nifty to find strong support at lower levels.

The Global stock markets are looking weak. United States is indicating early signs of recession. Oil is again near $100 per barrel. Foreign funds are net sellers in Indian stock markets. From 17 October till 20 November, they have been net sellers to the tune of 3200 crore. This amount is not very big looking at their overall investments in India. But this means that there is no fresh inflow for Indian stock market.

The economic indicators from the United States are not very good. This could be bad for emerging markets and even for European stock markets.