The markets were back to their winning ways after yesterday's pause. Strong buying in stocks across sectors powered the markets to a stellar rally. The Nifty closed the day at 4,375, up 143 points. While the Sensex shut shop at 14,745, a gain of close to 500 points. The frontline indices closed to week with 9% gains, the biggest weekly gain since election week.

How will markets trade on Monday?

Dipan Mehta, Member, BSE and NSE, expects a mild sell-off taking place on Monday considering that the market has gone up by 9-12% in such a quick span of time. "There could be a minor correction of maybe 100-150 points on the Nifty, but I don’t see the markets trading below 4,100 or 4,000."

Road ahead for markets:

Mehta feels the Nifty is on its way back to above 4,600, but was quick to add that it will test the resistance levels seen earlier on June 12. "The market has been trading in a fairly wide trading band and that kind of position remains as of now. It should go and test 4,600 Nifty and around 16,000 Sensex, and maybe one could see a correction from there. In all likelihood it will go and test the earlier highs of about 4,600 or 15,700. "

According to him, depending upon how the result season goes, one could expect the market to go to new highs. "Otherwise, it remains in a trading zone."

Rahul Mohindar of viratechindia.com expected the rally on the Nifty to be a steady journey, and so is surprised by the run up of the past three days. He does not expect the same kind of pace going forward and sees it breaking going forward, but was quick to add that he probably sees this trend heading up to 4,600 Nifty. According to him, 14,800 is a pocket where the market could get some resistance and slip down 500-700 points.

Similarly, R Balakrishnan, Investment Analyst, Centrum Broking, sees a 10% upmove in markets but would sell-off and sit on the sidelines. He doesn't see too much downside spikes. "I would like to see the market around 16,000. If it goes seriously above that, then I would like to exit and wait because at that point there would be a mismatch between the valuation and the pricing. Right now, what we are pricing in is a fair value plus about 15-20% growth in earnings which is not out of whack with our markets."