"The set up favours continuation of upsides for the following reasons. Two stocks, namely ICICI Bank and SBI, which together weigh around 35% in Nifty Bank index, have done the weightlifting so far, with both of them 16% and 5.3% above their respective peaks seen in Oct/Nov. HDFC Bank, which contributes 25.7% to the index, has been a laggard so faras has been Axis."

"Over the last few weeks, investors' sentiments have changed after improvements in various economic data like inflation & GDP. India's Economic growth and economic revival boost the confidence of investors to shift their money from large cap to midcap and smallcap space. We believe the outperformance of midcap stocks will continue as many midcap companies are generating healthy cash flow and are available at a reasonable valuation after the previous corrections."

"There has been an outperformance of 2.68% and 1.24% by small and midcap index against Nifty in August. But even BankNifty outperformed Nifty by 2.18%. It is mainly because the Nifty IT has underperformed. In this month, we may see mid and small caps outperforming and those who missed out on the index rally since mid of June 2022 may flock towards this segment."

"The rally of mid and smallcaps during the last two months marked the turning of the sentiment from an overcautious to optimistic view. We expect there are more spaces for smallcaps to deliver returns. Therefore, a lot of the increase was due to a catch-up rally in high-growth stocks. Smallcaps continued to see inflows from DIIs and HNIs and retail investors."

"On weekly charts, Nifty IT index has shown positive reversal after consecutive two negative close. Nifty IT index can show some more upside from current level till 30,500 in short to medium term. Hence, for time being or short term it can be said that pain is over for IT index & two stocks that look good in IT universe are Tech Mahindra & L&T tech services."

“The banking sector will continue to outperform, especially if the global money keeps coming in. They will again look for the same quality stocks which they held earlier and sold; which they will buy or even if they did not hold them earlier they will be looking to buy only the quality stocks. ”

“We can talk about decoupling, but from a global economic and financial angle, India cannot be decoupled. Yes, one can say India is a domestic driven economy and so it was in 2007 as well. That has not really changed. I am not into this decoupling kind of theory at the moment as a way of why our markets are doing better.”

“India is on way to reach the target of becoming a $5-trillion economy. In all probability, the per capita income may also more than double in the next five years and if that happens, then, of course, there were will be a phenomenal drive to boost consumption. When I say consumption, I include hospital side, pharmaceutical side, insurance companies and also include banks and NBFCs.”

"At the 18,000 zone, we are witnessing a trend line resistance and we have a huge built up in 18000 CE option (weekly series). Thus, with regards to the index, we advise traders for fresh long only above 18000 mark and that too on a closing basis. In such a scenario, we could see an extended move towards the 18150 – 18250 mark."