Nifty started the week on a flat note but strong gains on Wednesday’s trade saw the index hit 6800 mark for the first time. Profit booking at higher levels led by week global cues saw the index pair some of its weekly gains and closed the week at 6776 levels.

The trade data for March was released on Friday witnessed trade deficit at $ 10.5 billion (the highest in the last five months).

The 30 share S&P BSE Sensex closed at 22628 up by 269 points or 1.22%, while the NSE Nifty settled at 6776, up by 82 points or 1.22% on weekly basis.

Amid Nifty constituents, Ambuja Cement, Ultratech Cement, Axis Bank, Tata Steel, Tata Motors, NMDC, Sun Pharma and State Bank of India were top gainers while Hero Motocorp, Infosys, Tech Mahindra and Jindal Steel & Power were top draggers week ahead.

Nifty, on the weekly time frame, has formed a bullish candle with small shadows in either direction signaling continuation of positive trend. Index continued to form higher peaks in weekly chart.The Index has witnessed a strong rally of over 800 points in the last eight weeks which has stretched the daily momentum indicators into the highly overbought zone. Therefore, on technical grounds, we believe the index is due for a breather while the stock specific activity is likely to continue in the coming truncated week

The recent higher bottom formed at last Mondays low of 6650 which also coincides with the 38.2% retracement of the preceding up-leg, will act as a key support in the short term.

As the overall bias remains positive we expect the index to take a breather and consolidate between 6650-6850 levels before taking further direction.