The market made strong gains on Friday supported by positive global cues on account of progress in US-China trade talks with the Sensex closing 177 points higher at 38,862 while the Nifty rose 67 points to settle at 11,665.
Metals & IT Index gained while the Mid & Small Caps outperformed on account of relative value buying opportunities compared to large caps.
Major gainers were Tata Steel (3.36 per cent), Vedanta (2.38 per cent) and Bajaj Finance (2.25 per cent), top losers on the Sensex were SBI (down 1.46 per cent), PowerGrid (down 1.36 per cent) and Hero MotoCorp (down 0.78 per cent).
In fact, benchmark indices closed positive for the seventh consecutive week while the Nifty advanced 0.4 per cent during the week hitting an all-time high of 11,761, carrying the positive momentum.
On the sectoral front, weekly gainers were the metal, auto and realty were the gainers while top losers were energy, and FMCG.
According to analysts, the market may consolidate after the recent sharp up move.
Technical View
"After showing a weakness in the last session, the Nifty continued with follow-through decline on Friday and closed lower. A small negative candle was formed on Friday, which has placed at the support of 11560," said Nagaraj Shetti - Senior Technical & Derivative Analyst, HDFC Securities.
"Technically, this pattern could indicate a negative trend, but the lack of strength in the downside momentum (absence of sharp weakness on Friday) could give chance for bulls to make a comeback from the lows. Hence, a decisive move below 11,550 levels could signal more weakness for near term," he further said.
Market View
Analysts expect the coming week will be dominated by factors such as crude oil and currency movement. Domestic data such as Manufacturing and Industrial numbers and inflation will also be seen, while below average monsoon forecast has already put some dent in the sentiments.
"We remain cautiously bullish and would like to utilize the dips. It is also very important to see if the Nifty is able to breach 11760 on upside or retreat to 11500. These are the two numbers that will be seen with importance as that's the range," Mustafa Nadeem, CEO, Epic Research.
Going ahead, investors focus will be on Q4 results season starting next week, analysts said.
"Market sentiment is likely to be governed by upcoming Q4FY19 results as well as impending schedule of elections. We see the earnings revival which commenced from FY19 to continue in FY20 and be a major driver for markets. RBI has again reduced the repo rate by 25 basis point in line with expectations with a room for a further rate cut post elections, we believe. Globally, developments on US-China trade war and oil prices will also be important to look for. Though oil prices have moved up during this calendar year, concerns on global growth may pull down the prices if growth weakens," Teena Virmani, VP -PCG Research , Kotak Securities said.
