The volatility index IndiaVIX is hovering below 25 levels from the past couple of weeks which hints of no major movement in the short term.
SBI's economists say the surge in equity markets is not linked to economic recovery and maybe a sign of irrational exuberance.
After some tough years, the pharma sector is performing well and is around 25 percent up while the broader market is down 20 percent year-to-date.
The road ahead for the market is bumpy and a lot will depend on the course of coronavirus pandemic. Moreover, global cues and measures of governments and central banks will remain important factors for the market.
Experts point out that the rabi season ended largely on expected lines and at present, it appears the kharif crop is unlikely to be affected and may see a normal season.
Experts point out the broader structure of the market continues to remain weak as Nifty is making a lower top and lower bottom formation.
The Nifty Pharma index gained half a percent on May 7, taking gains to around 45 percent since March 23.
There's no relief from the COVID-19 front as the numbers are not showing any signs of slowing down yet and that could result in further extension of the lockdown, said Ajit Mishra of Religare Broking.
It needs to be seen if we can cross the medium-term resistance of 9,350. This would mean a lot for the markets.
Bank Nifty has been a laggard in the current up move and it should witness a strong up move as it has crossed its 20-day short term average after two months.
Mitessh Thakkar of mitesshthakkar.com recommends buying Apollo Hospitals with a stop loss of Rs 1,174, target at Rs 1,235 and CESC with a stop loss of Rs 412, target at Rs 450.
Ashwani Gujral of ashwanigujral.com suggests buying Sun Pharma with a stop loss of Rs 388, target of Rs 404 and Cipla with a stop loss of Rs 420, target of Rs 435.
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Mitesh Thakkar of miteshthakkar.com recommends buying State Bank of India with a stop loss of Rs 320 and target of Rs 335 and Ambuja Cements with a stop loss of Rs 207.5 and target of Rs 222.
Monetary Policy Committee (MPC) of Reserve Bank of India (RBI) has kept the repo rate under the liquidity adjustment facility (LAF) unchanged at 5.15 percent.
Prakash Gaba of prakashgaba.com recommends buying Havells India with target at Rs 645 and stop loss at Rs 623 and IndusInd Bank with target at Rs 1425 and stop loss at Rs 1297.
Ashwani Gujral of ashwanigujral.com recommends buying PVR with a stop loss of Rs 1960, target of Rs 2010 and Kotak Mahindra Bank with a stop loss of Rs 1630, target of Rs 1665.
Mitesh Thakkar of miteshthakkar.com recommends buying ACC with a stop loss of Rs 1533 for target of Rs 1580 and Infosys with a stop loss of Rs 775 for target of Rs 806.
Mitesh Thakkar of miteshthakkar.com recommends buying Bharti Airtel with a stop loss of Rs 461 for target of Rs 485 and GAIL India with a stop loss of Rs 125 for target of Rs 137.
Sudarshan Sukhani of s2analytics.com recommends buying Bosch with stop loss at Rs 15030 and target of Rs 15865 and Bharti Infratel with stop loss at Rs 249 and target of Rs 262.
Shabbir Kayyumi of Narnolia Financial Advisors said a sustained move above 12,000 will push the index higher towards previous highs, starting around 12,100 and can extend towards 12,400
Morgan Stanley also has overweight rating on Lupin with a target price at Rs 1,003, implying 47 percent potential upside from current levels as it believes the share price will rise in absolute terms over the next 30 days.
Deutsche's top picks are Torrent Pharma, Aurobindo Pharma and Cipla which all are buy calls.
Nifty’s 5-week SMA is rising and is placed around 11,611, which implies weakness is only below the crucial support of 11,611
Sudarshan Sukhani of s2analytics.com recommends buying Kotak Mahindra Bank with stop loss at Rs 1355 and target of Rs 1395 and Infosys with stop loss at Rs 732 and target of Rs 745.