Earlier in the day, the Sensex gained 1,000 points to breach the historic 40,000 mark for the first time ever and the Nifty too crossed the key 12,000 mark.

After hitting record highs as the BJP-led NDA voted back to power for the second five-year term on Thursday, the market lost all gains with benchmark indices ending 1 per cent lower in the red.

While the Sensex ended 298 points or 0.76 per cent lower at 38,811, the Nifty was down 80 points or 0.69 per cent at 11,657.

Earlier in the day, the Sensex gained 1,000 points to breach the historic 40,000 mark for the first time ever and the Nifty too crossed the key 12,000 mark.

According to analysts, with the big event behind - the market may get into a consolidation mode as the corporate earnings and economic data will be closely watched by the investors.

Technical View

"Investors and traders must wait for correction to enter in the market as going forward the Sensex and Nifty may need to consolidate at lower levels. In general the market are expected to follow the global market sentiments for next couple of days. Nifty and Sensex may correct about 5 per cent in next few days. Investors must focus on the quality of Mid-Caps in Infra, financial and banking sectors in any correction in the markets," said Abhijeet Bajpai, Co-founder & CEO, Avighna Trades.

Analysts are expecting the market to correct by 5 per cent for stocks to look attractive for investors to come in to buy.

Infrastructure, construction and financials along with the selected Mid-Cap and Small-Cap are likely to be in focus.

Market View

"The market has seen a new all-time high of 12,041 but ended the day on the back of profit booking. This is what we have been indicating in the last few days. The volatility was very much expanded, derivatives were pointing to a range of 12,100 - 11,500, said Mustafa Nadeem, CEO, Epic Research.

Derivatives data pointed to a range bound action and that is what we have seen with the Nifty not able to surpass 12,100 while it may continue to take support around 11,500. We have seen both calls and puts being hammered today amid declining volatility.

"Coming days, we believe there may be some sideways movement between 11,450 - 11,800. Though one should still utilize the dips for a potential short term upside to 11,900. But its time to be aware that there is a selling pressure around 12,000 and it is the third time we have not been able to hold above 11,900, Nadeem further said.

"For the major part of the day, we saw index correcting with the addition of open interest, this indicates fresh shorts were formed in both the indices. However, a good amount of longs formed before and on the exit poll day are still in the system. In options front, the build-up in call options was scattered between 11,700-12,500 strikes. On the other hand, we witnessed decent writing in 11,300-11,600 puts. Going ahead, 11,500-11,600 shall act as a support zone; whereas, the hurdle is now placed around 12,000-12,100. At the current juncture, it's important to see the follow-up move in the coming session before initiating any aggressive directional trade," said Sneha Seth Derivatives Analyst, Angel Broking.