Much of Wall Street shares the bullish take. This week, Goldman Sachs Group Inc. said it expects Brent to peak at $140 a barrel in the coming months. Morgan Stanley said its most bullish scenario of $150 could be moved higher. The record for Brent is $147.50, set in July 2008.

the markets declined because the idea is that as long as the labor market remains strong, as long as economic activity is moving above what I think consensus estimates are, it implies that the Fed may have to raise interest rates more aggressively.As we move through the next couple weeks and couple months, data that come in hotter than expected, you would expect that the market would greet that more negatively.

“My guess is that these things will take five-six months to stabilise. In these five-six months, one can either not add new money or know that we are adding it for a three-year view or buy a particular stock or mostly not do anything for a few days or weeks. It does not matter. There is no ego in saying that I bought it at the bottom.”

FPIs have net sold Rs 13,888 crore worth of stocks so far in June, NSDL data showed. "Basically, the foreigners have taken a view that Indian markets continue to be relatively overvalued in the face of rising inflation and rising global interest rates and they are sellers on all days,” Deepak Jasani, Head of Research - Retail, at HDFC Securities said.

“We believe India will go through the three decade story which has happened in the case of Japan between 1960 and 1990 and China between 1990 and 2020. Our belief is 2020 to 2050 will be the golden era for India both because of the positive demographics as well as India becoming a saviour of the world in a China plus one strategy.”

“It is the entire sector which is doing quite well or the majority of the stocks within the sector which have done exceptionally well. That is a sign that this strength should continue for the sector over the near to medium term. My picks remain M&M as well as Maruti. I believe traders could look at the buy on dips opportunity in these two stocks.”

On the sectoral front, S&P BSE Bankex dropped 2.3 pent, while BSE IT index slumped 2.8 per cent. BSE Metal index lost 2.7 per cent while the realty index shed 1.6 per cent. BSE Oil and Gas index, however, notched up gains of 0.6 per cent for the week, likely buoyed by a sharp rise in global crude oil prices.

For the coming week, the markets may find resistance at 16,400 and 16,665 levels. On the lower side, supports exist at 16,000 and 15,840 levels.

"These markets are not going anywhere; you will see sharp spikes wherein Nifty might go to 17,500 and come back to 15,500 depending on when you got in. You will feel you are a champion or you are a loser but on a one year basis, markets might not have gone anywhere."

Gold has recovered substantially from the lows set in mid-May. The debate about the monetary policy stance of the Fed and other central banks and a brief correction in the US dollar helped gold come off the lows.