For the week, Sensex was down 0.5 percent and Nifty shed 0.4 percent. Nifty Bank lost 0.8 percent during the week while the volatility index on a weekly basis closed at 14.33 percent.
On the options front, maximum Put open interest is seen at 10000 followed by 10200 strikes while maximum Call open interest is at 10500 followed by 10400 strikes.
Midcaps also participated in the correction as the Nifty Midcap was down 1 percent.
It would be prudent for investors to adopt a stock and sector-specific approach where growth is visible, he said.
Overall, we expect markets to consolidate between broad range of 10,240-10,520 levels for few sessions before giving any fresh breakout on either side.
Gravita India, Dilip Buildcon, Graphite India and ITDC gained up to 7 percent while Central Bank of India, IDBI Bank, SBI and PNB were mildly lower.
Going forward, Nifty has an immediate support near 10285 and if it sustains below this level will lead to a further correction towards 10210 and 10141 levels respectively.
Roughly half of 19 analysts and money managers polled say they expect the index to stay in the 35,000-40,000 range in fiscal year 2018-19.
The index which opened at 10,405 rose marginally to hit its intraday high of 10420 before bears took control. The selling pressure took the index to its intraday low of 10,346. The index closed 50 points lower at 10,360.
Midcaps were off day's high in late trade, but still outperformed frontliners throughout the session. The Nifty Midcap index rose 0.4 percent and BSE Smallcap index gained 0.8 percent.
Top 20 companies with highest stake owned by foreign portfolio investors in percentage terms at the end of December 2017 quarter include names like HDFC.
MMTC shares were up 19 percent as the board will consider bonus share issue next week.
The pull-back indicates a bit of respite from oversold territory and that has to be considered with a bit of skepticism.
The Nifty50 is expected to open lower with a negative bias on Thursday tracking weak handover from Wall Street and muted trend seen in other Asian markets.
Market breadth was balanced with advance:decline ratio at 1:1 which means both bulls and bears tried their dominance on D-Street.
Nifty Bank index was back above 200-DMA, recovering 360 points from day's low to end 113 points higher.
Some stability in the global market, non-redemption in MF and availability of market at bargaining price can provide some support to the domestic market in the near-term.
So, on a year-on-year (YoY) basis it will be a nice year of correction and once the new government comes in the market should pick up.
SBI, ICICI Bank, Axis Bank, Bank of India, Yes Bank, Andhra Bank and Canara Bank declined up to 3 percent.
PSU banks, select private banks and oil marketing companies gained while technology and infra stocks were in the red.
We expect healthy 15-18 percent earnings growth and bullish on large-caps over the midcaps.
TCS was biggest loser among Nifty50 stocks, falling more than 5 percent after big block deal.
After the recent correction, valuations of Indian market have come down to a reasonable level which should give motivation to investors to accumulate quality stocks on declines.
Midcaps also participated in the rally and recovered sharply from day's low, but still underperformed frontliners. The Nifty Midcap index was up 1 percent despite balanced market breadth.
Barring PSU banks, all sectoral indices were higher, while midcaps too traded with gains of around 0.30 percent.