Ambareesh Baliga of Karvy Stock Broking says that 2007 will be the year of the mid-caps; he expects them to outperform this year. "I think for the whole of 2007, one will possibly see the midcap Index out performing the largecap one. The main Indice should be in the regions of 12,000 to 15,000-15,500 levels for the whole year."

Ahead of results season, he says that expectations are high. Baliga is not very comfortable with the market at current levels, and advises investors and traders to be cautious.

"We have been maintaining that we are extremely cautious on this market, not too comfortable at the current juncture and since we are getting into the result season, I think one should be extremely cautious because results maybe good but expectations are much higher," he warns.