A morning walk down Dalal Street | Stay cautious, use dips to buy stay cautious and use dips to buy on declines as long as Nifty holds 11,435

Indian market closed off record highs as investors preferred to book profits at higher levels. The S&P BSE Sensex closed above its crucial level of 38000 for the first time to hit a record high of 38,076.23 while Nifty came under the striking distance of hitting 11,500 levels.

Banks led the rally for equity benchmarks, with major gains coming in from PSU banks. ICICI Bank and Axis Bank helped the market climb to new highs on Thursday. 

Investors are advised to stay cautious and use dips to buy on declines as long as Nifty holds above 11,435 levels.

The Sensex completed its journey from 37,000 to 38,000 in a matter of just 10 sessions and there are lot of small and midcap stocks which outperformed in the rally. 

Stocks which led the rally include names like Kwality, 8K Miles, Reliance Naval, Venky’s, Manpasand Beverages, ICRA etc. among others.

Support for Nifty is seen at 11350 while resistance is placed around 10600 levels. 

Analysts expect Midcaps and Small caps to continue to do well during the fag end of the earning season.

However in the short term key concerns with regards to trade and currency wars coupled with US sanctions on Iran have kept equity investors on the edge.