Mumbai, July 30 (TIWN) Attractive valuations along with expectations of another round of key lending rate cut and stock specific movement might just lift the subdued sentiments in the Indian equity markets during the upcoming trade week.

 Lower-than-expected growth in quarterly results as well as a massive flight of foreign funds have dampened the stock markets lately.  "Oversold readings on large, mid and small cap indices abound. The market is now set for a rebound as the 38 days correction cycle has been repeating for the last three sessions," said Sahil Kapoor, Chief Market Strategist-Research, Edelweiss Investor Research.   "The underperformer of this fall, the auto index has eked out a reversal this week. Expect Nifty to climb to 11,650 points in the short term. Over the next two weeks -- two rate cuts -- are expected, one each from the US Fed and the RBI (August 7)." 

According to Deepak Jasani, Head of Retail Research for HDFC Securities, though markets ended with the third consecutive week-on-week loss on July 26, the rate of fall has reduced over the last three sessions and "in fact the markets ended in the positive on last Friday".  "This positive momentum could continue early next week with US Fed meet outcome (on July 31) and corporate results impacting further momentum in the markets," Jasani said.