Now that the bottom of 10,585 is tested, we are expecting a pullback towards 11,000 and for a medium-term aspect breakout on either side will determine the actual trend.
We advise investors to invest in quality names like HDFC Bank, Infosys, Titan and Ultratech Cement where downside appears to be limited, says Reliance Securities' Rajeev Srivastava.
"There isn't a wave for Modi like it was in 2014 but he is clearly in the fulcrum of all debates," said Gautam Chhaochharia, Managing Director and head of India research at UBS Securities.
Investors should look for the companies having sustainable earnings with robust business outlook and quality management.
Based on earnings, valuations have come to long-term averages, so the risk-reward looks favourable for Nifty stocks, said DSP Investment's Gopal Agrawal
The domestic brokerage firm expects the Nifty EPS to grow 9 percent in FY19 and 27 percent in FY20.
"It would be wise to stay cautious and do selective stock picking than taking a big call on the market," said Mihir Vora, director and chief investment officer at Max Life Insurance.
The rupee has witnessed volatile swings over the last few days on the back of on-going US-China trade talks, volatile crude oil prices, outflows from domestic equities and rising dollar index
Nifty Options data for the week shows that in monthly expiry, Call writers gained strength at 10,800-10,900 strike while Put writers stay firm at 10700 strikes
The strategy at present should be to invest in a phased manner only in companies that are not connected to any political party, have a robust business model, strong earnings and cashflow visibility
Majority of the momentum oscillators are in oversold zone creating the possibility of a bounce back.
It is time to apply bottom fishing strategy with capital protection approach. One should invest in 4-5 parts till election results are announced.
Traders are suggested to shift focus in Index Option strategy which is likely to remain range bound comparatively than the volatile and wild swing in individual stocks.
With regards to financials, he said he still likes private banks.
Global events and news flow will influence the market as market players will closely track on any news related to Brexit, US–China trade talks and crude oil prices
"Baring the PSU pack, the rest of the market is fairly valued and it is better to invest systematically," said Naren.
"After the IL&FS episode, 'inter-connected exposures' is a concern for markets," said Kotak.
Going forward, 10,700 is expected to act as crucial support for the Nifty, and any fall towards 10,700 may get bought
Once the elections results are out and market takes cognizance of that, the earnings recovery should be pretty strong, said Vaibhav Sanghavi, co-CEO of Avendus Capital.
With regards to IT, the tailwind on rupee continues to sustain, said HSBC Global AMC's Tushar Pradhan.
If the market closes below 10,650, it would be a confirmation that the market is going to see a rundown, he said.
However, this period could also offer opportunities to cherry pick some quality equity investment.
Immediate resistance zone is seen at 10,960-11,020. But, last week’s high of 11,118 needs to be taken out a rally to be seen on the upside
Markets are more likely to follow global cues where we have seen a huge underperformance by India which can get corrected via a post-budget rally in February.
Paul Krugman is Professor Emeritus of Princeton University's Woodrow Wilson School and was awarded the Nobel Prize in 2008 for his work on economic geography and identifying international trade patterns