Nifty on the weekly chart has formed a small bodied bullish candle with a small lower shadow, suggesting consolidation after last weeks's stupendous up-move.

In the weekly time frame, the index has continued to form higher highs and higher lows. The narrow range-bound consolidation for the week after last Friday's sharp up-move indicates that the Street is waiting for further directional cues from the first quarter results for FY12-13.

Nifty is likely to trade in the range of 5,370-5,260 for the coming week whereas the broader market is likely to continue with their recent outperformance from the benchmark as the index heavy weights take a breather in the short term.

A strong close above the 5,350-5,370 area will favour bulls for a dash towards the near-term targets of 5,450-5,500. From a short-term perspective, the bullish gap area between 5,190 and 5,159 below last Friday's low is expected to act as a cushion in case of any throwbacks from current levels.

In July (till July 5, 2012), FIIs were net buyers to the tune of Rs 1,849 crore while DIIs were the net sellers to the tune of Rs 1,357 crore. Key data/events to watch globally would be MBA Mortgage Applications, wholesale inventories, Initial jobless claims.

In India, key data to watch out would be IIP, Monthly wholesale sale prices. The first quarter of the FY12-13 earnings season will kick-start next week with tech majors Infosys and TCS announcing their numbers.

Other key results to watch next week would be HDFC and HDFC Bank.

Last week, key benchmark indices remained listless and consolidated in a narrow range. Nifty traded in a narrow range of 5,330-5,260 for the week with high volatility. The broader market outperformed the benchmark indices as the BSE mid cap and small cap index closed with gains of 2.5 per cent and 4.2 per cent, respectively.

The 30-share Sensex closed at 17,521.12, up 91.14 points or 0.52 per cent, while Nifty closed at 5,316.95 up 38.05 points or 0.72 per cent on a week-on-week basis.

Bharti Airtel, DLF, HDFC and HDFC Bank, ICICI Bank, State Bank of India and JP Associates were the major gainers in the index, whereas Asian Paints, ITC and Infosys Technology were the major draggers in the index.