It was one of the best weeks, we have seen for the markets in two-years, with the Sensex surging 4.98 per cent and the Nifty rallying 5.12 per cent during the week.

A sharp drop in crude prices through the week and a recovery in the currency, helped boost sentiments for stocks in India.

Except the IT sector, stocks from almost all of the sectors saw a sharp vertical recovery. On Friday, the rally was led by some solid buying in oil marketing stocks, including BPCL, HPCL and Indian Oil.

Punjab National Bank was a clear laggard, after its results disappointed the street. The bank reported a net loss of Rs 1,400 crores, on a rise in provision. In fact, most analysts believed that the worst for the PSU banking space was over, after a good set of numbers from Union Bank and Bank of Baroda.

The NBFC space saw some pressure on Friday, on fresh reports of a likely default, if liquidity conditions were not eased.

In results, Vedanta disappointed, while L&T reported a good set of numbers. By and large the earnings season was good. Global cues were supportive, on easing of trade tensions.

Next week a lot would depend on global cues and markets would take direction from there. It is likely that we would see some fresh buying emerge, though there could be profit booking at higher levels.

Crude behaviour and currency movement would also assume significance in the coming days. All in all, we can expect some consolidation for the markets at these levels. As we approach election, expects the markets to get increasingly volatile.

Elections in the key states of Madhya Pradesh, Rajasthan and Chhatisgarh are expected this month and next month. It is advised to take limited exposure, until after the results are declared.