Nifty started the week on a flat note as it bounced back taking support near its June’14 low and gained from strength to strength to close near the high of the week. Markets cheered better than expected economic data print, Industrial Production for May at 4.7% and Consumer Price Index (CPI) at 7.31%
   
The 30 share S&P BSE Sensex closed up by 617 points or 2.47% at 25641 while the NSE Nifty settled at 7663 up by 204.30 points or 2.74%.
   
Amid Nifty constituents, Axis Bank, Hindalco, IDFC, BHEL, L&T, State Bank of India, Tata Motors and Tata Steel were top gainers while Bajaj Auto, Gail and Hindustan Unilever were top draggers.
   
The Q1FY15 results announced during the week were a mixed bag with TCS posting better than expected results, Kotak Bank results came in line with estimates while Bajaj Auto numbers were slightly below expectations.

Nifty formed a bullish candle and closed near the high of the week recouping most of its previous week decline. The index, during previous week, gained over 210 points over four consecutive sessions and expected to pause and consolidate the gains in the upcoming week amid subdued global cues.
   
After last week’s sharp decline, we expect the index to remain in a sideways consolidation mode between the broad range of 7800 and 7440 in the short-term.
   
Stock specific price action is likely to continue within this consolidation phase as the result season pans out.
   
A strong close above the recent life high of 7808 will confirm a double bottom formation around the 7440 region. This indicates conclusion of the secondary corrective phase and signals resumption of the upward momentum towards 8100 in the near term.
   
The index has held above 7441 despite high volatility in last week’s trade. Only a decisive break and close below 7441 would put bulls on the back foot and open an extended profit booking towards the 7200 region to retrace the strong gains amassed during the May-June rally (6638 to 7808).