Market remains in consolidation mode

The market ended in positive territory on Friday with the Sensex gained 160 points to end at 38767.11, while the Nifty closed 46 points higher at 11,643.50.

GAIL, ITC, Maruti Suzuki, Cipla and Zee Entertainment were the top gainers on the Nifty, while Indiabulls Housing Finance, IOC, Bajaj Finance, L&T and Tata Motors were the major losers.

About 1355 shares have advanced, 1138 shares declined, and 153 shares are unchanged.

 According to analyst, for the last 10 trading sessions, the Nifty has been consolidating in the range of 11550 to 11760. Breaking of this range would give the signal of fresh momentum in the market.

F&O data shows that amongst the Nifty Options, Call writing is seen at 11700-11800 levels, indicating 11750 -11800 level to act as a strong resistance for the coming days.

On the other hand, on the lower side Nifty is likely to find support around 11500-11550 levels where Puts have been written, analysts said.

Recently, the markets had run up quite sharply and generally after such a relentless move, the markets needs to undergo either 'time-wise' or 'price-wise' correction.

Technical View
"What we are experiencing is a part of that time-wise correction. Such development is considered a healthy move if the markets has to unfold further legs in the upward direction. As far as levels are concerned, we are trapped in a range of 11761 - 11549 and a decisive breakout on either side would bring back some momentum in the market. In our sense, even if we slide below 11549, the trend does not change and hence, we would rather interpret it as a good buying opportunity," said Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking.

"In any kind of consolidation, it is hard to give time projection; but according to us, it's a matter of time, we would see the Nifty going beyond 11761 and enter an uncharted territory. Whether this happens before the election verdict or not, the time will tell us. Till then traders are advised not to have a contrarian approach and should rather look to identify potential candidates in order to fetch higher returns, he further said."

Participants will react to the Infosys and TCS results in early trade on Monday.

 "We feel the Nifty may spend some more time in a consolidation range (i.e. 11,500-11,800) while movement on the stock specific front would keep the participants busy. We suggest keeping a close eye on earnings season," said Jayant Manglik, President - Retail Distri-bution, Religare Broking.