Nifty continues to be in 4900-5100 range

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The week is going to be an interesting one on the back of a spectacular pullback on Friday led by sectors like banks and metals, says CNBC-TV18's Managing Editor Udayan Mukherjee. "As we walk into trade, we are at over 17,000 on the Sensex touching 5,050 once again on the Nifty." The big question remains if we can keep our heads above 5,000 for starters.

Here is a verbatim transcript of Udayan Mukherjee's comments on CNBC-TV18. Also see the accompanying video.

On markets this week:

It is going to be an interesting week of trade because we had a spectacular pullback on Friday - a surprising one too led by sectors like banks and metals. And as we walk into trade we are at 17,000 plus on the Sensex, 5,050 once again on the Nifty and there is news on Reliance over the weekend - confirmation on the bid on LyondellBasell. So there is lot of corporate and local action that is at stake as we go into trade this Monday morning. Let us see if we can keep our heads above 5,000 for starters.

Recap of last week's trade:
Friday was very volatile and that pullback would have surprised a few people out there. I don't think too many people expected that the Nifty would bounceback quite so easily and close above 5,000-5,050. So that might have surprised a few people.

The only wrinkle is that S&P, which has been so strong over the last few weeks, has sort of becoming a bit volatile over the last few sessions. It has struggled to keep its head above 1,100 and even the Dollar Index is bobbing around a bit. So you just need to keep and eye on what is going on with the US and with the dollar. But our market strength was quite surprising on Friday but we will have to see if we can build on that this week.

On breaching intermediate highs:
We will try and do that once again - 5,080-5,100 has been a sticky kind of area for the market and we are pretty close to that once again. It was surprising to come back on Friday because the liquidity data does not support it. Foreign institutional investors (FIIs) sold both in the cash and futures market. So it did not look like there was a huge surge of buying from the institutional hands - insurance companies or FIIs, which propelled that rally on Friday.

But we are back at 5,050 - a couple of times in the past we have stopped around this 5,080-5,100 and maybe the market will probably pause once again if it does get there during the course of the next couple of days.

So its not going to be easy but the fact that it has bounced back will keep the shorts on edge because I don't think they would have played for that pullback on Friday.

It looks like the Nifty will still continue to be in this 4,900-5,100 kind of range and within that maybe with spikes of volatility like you saw on Friday. But one step at a time - I suspect the Nifty's call is that it has to first get above that 5,100 where it is facing resistance and then people will start talking about getting back to a new intermediate high of 5,200 once again.