Market to consolidate between the key pivotals of 5,100 and 5,300 By PANKAJ PANDEY, ICICIDirect Key benchmark equity indices snapped its three weeks declining trend and has closed the week with a gain of more then 2 per cent on weekly basis. Nifty started the week on a bullish note on Monday's trade, but after the initial spurt at the start of the week, bulls appeared apprehensive as Nifty traded in a narrow range with high volatility during the rest of the week. RBI on its monetary policy maintained a status quo by keeping the repo rate and CRR unchanged while cutting statutory liquidity ratio (SLR) by 1 per cent to 23 per cent. The 30-share BSE Sensex closed at 17,197.93, up 358.74 points or 2.10 per cent, while the NSE Nifty closed at 5215.70, up 115.85 points or 2.30 per cent on a week-on-week basis. Capital Goods, Banking, Healthcare and Power stocks were the major gainers in the index during last week's trade. Glenmark and IPCA Labs reported robust numbers while IDBI Bank posted earnings in line with our estimates but the asset quality deteriorated more sharply than our expectations. GAIL reported numbers which were above street estimates. RBI kept the repo rate and CRR unchanged as estimated by the Street. However, key surprise came with the 100 bps cut in SLR ratio from 24 per cent to 23 per cent. India's merchandise exports fell 5.5 per cent to $25 billion in June, compared with $26.5 billion in the corresponding month last year, as demand in the struggling European economies continued to decline. Imports recorded a much sharper fall - declining 13.5 per cent to $35.4 billion, compared with $40.9 billion in June 2011. Nymex crude closed at $87.13/barrel declining 3.3 per cent on a weekly basis (as on Thursday). Nifty on the weekly chart has formed a bullish candle with a shaven bottom suggesting similar open and low for the week. The index after the initial spurt at the start of the week appears apprehensive near the key resistance posed by the bearish gap area placed between 5,260 and 5,300. Pullback attempts in the near term will see increased volatility near the gap area and the overhead trendline resistance area joining the immediate highs which is placed at 5,280-5,300 level . On the lower side, 5,160-5,100 levels appears to be strong support being the presence of 200-day EMA and support from short term demand line in daily chart. The market is expected to consolidate between the key pivotal of 5100- 5300 during the coming week. In the month of August (till August 2, 2012), FIIs were net buyers to the tune of Rs 582 crore while DIIs were net sellers to the tune of Rs 239 crore. Key data/events to watch globally would be Initial Jobless Claims, MBA Mortgage applications and Wholesale Inventories. In India, key events would be IIP numbers. Key results to watch out next week would be SAIL, Oil India, Sun Pharma, Cadila, Apollo Hospitals, Ranbaxy, Tata Power, SBI, HPCL, ONGC, M& M and Bharti Airtel.