Investors turned cautious on the first day of Lok Sabha polling with the market ended marginally higher in lacklustre trading session on Thursday.
The Sensex gained 21 points to close at 38,607, while the Nifty 50 Index was up 12 points to end at 11,596.
Sectoral indices like Oil & Gas, auto and consumer durables saw buying interest, while metals, banking and IT indices were in the red on the back of heavy selling.
The Nifty is seen consolidating after it made new highs last week. The broader indices were losing steam and the general sentiment among the participants was lacklustre.
"Though we're bullish on the Nifty but volatility is inevitable on stock specific front. The result of IT majors i.e. Infosys and TCS is going to kick-start the earnings season tomorrow i.e. April, 12. Besides, important macroeconomic data i.e. IIP and CPI inflation are also scheduled. We suggest keeping positive yet cautious approach and preferring hedged positions, said Jayant Manglik, President - Retail Distribution, Religare Broking Ltd.
According to analysts investors are likely stay on the sidelines till a decisive direction emerges post elections. With crude hitting 17 months high of $71. 28, investors are worried about its impact on oil bill and rupee.
Technical View
According to technical analysts the market is in a consolidation range and is now at the lower end of the range i.e. 11569 - 11549.
"Going ahead, this support zone would be closely watched by the traders. A sustainable move below this would result into an extended correction; whereas, in our sense, we would probably be able to hold it and then move higher. On the flipside, the immediate resistance is now placed in the zone of 11638-11675 levels, said Sameet Chavan Chief Analyst-Technical and Deri-vatives, Angel Broking.
"The market was range bound and finally settled with minor gains as investors stayed cautious at the start of the initial phase of polling and remained watchful ahead of the announcement of CPI and IIP data tomorrow. Pick up in auto sales aided the sector to gain investor's attention.
“On the global front, economic growth remains a concern but FED minutes reiterating the dovish view on rates will provide support to emerging markets like India," said Vinod Nair, Head of Research, Geojit Financial Services Ltd.
The market is awaiting Q4 numbers from TCS and Infosys that will be announced on Friday.
