Shah observed that activity was taking place around 10,100-10,350 zones and once that is taken, the market could rise to 10,600-odd levels.
As the market continues to be in a consolidation phase, experts at JM Financial believe that the Street could be preparing for a breakout.
"What could have been a large correction has been broken down and the market has had enough demand to absorb these. The manner in which market is finding support at lower levels is commendable we would like to believe it is preparing for a breakout," Gautam Shah of JM Financial told CNBC-TV18 in an interview.
Further, he observed that activity was taking place around 10,100-10,350 zones and once that is taken, the market could rise to 10,600-odd levels. So, at the current levels, it is justified to go long, he added.
Speaking on the crude chart, Shah believes Nymex can appreciate to USD 60-62/bbl levels and nothing beyond that in the short term.
On sectors, he likes metals, auto and capital goods, while infrastructure, realty and textile could be the dark horses.
Having said that, he recommends avoiding FMCG and pharmaceuticals for now as they may trade in a tight range.For entire interview, watch accompanying video.