The actual weakness would start only if Nifty sustains below 10,870, till then, one should continue with a stock-specific positive bias.
As we step into the monthly expiry week, our eyes would be on a few crucial levels. On the upside, 11,250 is the level to watch out for, whereas, 11,050 has now become key support.
On the upside, the Nifty needs to sustain 10,800 for the uptrend to continue towards 11,100 and then possibly 11,350.
On the weekly chart, Nifty has formed a bullish higher top higher bottom pattern. A similar pattern is also observed in the Midcap and Smallcap indices, indicating broad-based rally in the markets.
In terms of market cap, it said it considered micro, small and midcap companies trading at attractive valuations relative to their large cap peers, post the flight to safety driven large cap rally.
Most experts see FII flows moving towards few largecaps in coming year also
The Nifty Midcap index itself fell 18 percent and around 45 stocks included in the index corrected in the range of 30-90 percent in last 18 months.
Crude oil prices and rupee movement amid trade tension between US-China and US-Iran are likely to keep markets volatile, an expert said
Overall, especially after the run in November, the market has been rangebound and stock-specific action has continued, which is likely to be the top theme in the rest of 2019 as well
Experts feel that investors sitting on cash should buy into markets in a scattered manner instead of making a lump sum payment.
Traders can accumulate the stock in a range of Rs 820-Rs 830 for the upside target of Rs 905 level and a stop loss below Rs 765, says Shitij Gandhi of SMC Global Securities.
A sustained trade above 11,264 can trigger a pullback taking it to levels of 11,600-11,750. However, failure to hold support levels of 11,265-11,260 can extend Nifty to 11,200-11,175, says Aditya Agarwala of YES Securities
On the daily charts, the index is trading near its immediate support level of 11,274 (50-DMA). Any violation of this level will trigger further downside towards 11,170 and 11,075 levels.
Rajesh Agarwal of AUM Capital recommends buying Hexaware Technologies with stop loss at Rs 449 and target of Rs 464, Axis Bank with stop loss at Rs 644 and target of Rs 660 and Graphite India with stop loss at Rs 988 and target of Rs 1025.
On the upper side, 11,500 will act as strong resistance, said Sumit Bilgaiyan of Equity99.
Centrum Wealth Research said if Indian corporate earnings can experience long term mean-reversion to those levels at 5.30 percent, robust earnings uptick can be expected.
"If the Nifty falls below the 10,680 mark, it could correct to 10,500 levels on the back of further selling," says Shitij Gandhi of SMC Global Securities
Investors need to be careful while selecting stocks in midcap space as any unfavourable result in state elections would result in a drastic fall in midcaps and smallcaps
The escalating load of NPAs, bond yields and decline in credit growth rate are major issues faced by state run banks.
Now all eyes are on corporate earnings and Karnataka elections along with crude oil movement, experts suggest.
Ashwani Gujral of ashwanigujral.com is of the view that one can sell REC, Bank of India, Asian Paints and HDFC Bank and can buy Tech Mahindra and Natco Pharma.
Ashwani Gujral of ashwanigujral.com is of the view that one can buy Ashok Leyland, NMDC and JSW Steel.
Gaurang Shah of Geojit Financial Services is of the view that one may prefer Natco Pharma.
Ruchit Jain of Angel Broking recommends buying Natco Pharma with a stoploss at Rs 995 and target of Rs 1080 and a buy on GHCL with a stoploss at Rs 286 and target of Rs 327.
Ashwani Gujral of ashwanigujral.com is of the view that one can buy HDFC Bank, Natco Pharma, Hindalco Industries and Axis Bank and can sell TCS.