By Anichya Shah/CNBC-TV18

The market was stuck in a 1% range last week. Looking at past data, can we say that this rangebound activity will lead to a breakout?

Last week, the Nifty has on a closing basis has traded in a narrow band of 4,709-4,778 . The markets tend to breakout after consolidating in a very narrow range.

Since 2003, it has traded in less than a 2% range on a weekly basis for 13 weeks. In the following weeks, 31% of the times the market moved more than 5%; 23% of the times it has moved 4-5%; 31% of the times it moved 3-4%; and 5% of the time it moved less than 3%.

A movement of 5% and above will test the 4,500-5,000 band. 4,500 put and 5,000 call continues to be levels of maximum option open interests. Support of 4,600, and resistance of 4,900 will be tested on a 3% up move