By Malvika Gurung
Investing.com -- The domestic market made a positive opening to the new week, rising for the second straight session on Monday amid mixed jobs data from the US and a boost in sentiments from a jump across Asian stocks in the morning trade.
In a note provided to Investing.com, Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said that the market is poised to break out of the range of 18,300-18,600.
The market momentum appears to be strong as Nifty has increased by 9.5% from the lows hit in March.
“Macro news flows are positive for a breakout of the upper range. But more activity is likely to be in the broader market where many mid and Smallcap stocks are breaking out. There is valuation comfort in the mid and Smallcap universe,” Vijayakumar noted.
On the banking sector, the market expert states that despite being a crowded trade, the sector will remain resilient since interest rates have peaked and credit growth continues to be robust.
Towards the auto sector, he states that autos have the potential to outperform since there are clear signs of revival in demand, while the mid-cap IT industry is far outperforming the large-cap IT industry.
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