Muted institutional flows are leading to some consolidation but there is decent buying in many quality midcap and smallcap stocks.
Market analyst has advised investors to keep 75% of the portfolio in large caps amid the ongoing rally
Markets could also be impacted by an eventful economic calendar that begins with quarterly GDP growth rate numbers, followed by auto sales numbers.
On Friday, the BSE benchmark Sensex closed above the 56,000-mark for the first time and had climbed by 175.62 points
Satish Ramanathan, MD and CIO- Equity at JM Financial Asset Management, said there is a need to wait for the festive season to start.
From here on, things would get more and more difficult for unidirectional traders since markets could remain choppy.
Considering the present market condition, BofA Securities is positive on 15 largecap stocks.
Sensex updates: Returns from current levels will be more calibrated and focus on quality and value will yield sustainable returns
Investors had been waiting for these levels for long, but now is the time that they should look for some profit booking
Among largecap stocks, mutual funds bought shares of Indus Towers, Havells India, SBI Cards, JSW Steel, and Muthoot Finance.