Hot Stocks | Marico may see an upside of 12% in short term; Godrej Properties, Ramco Cements look weak on charts

Nifty has completed his 61.8 percent retracement of the entire fall of the calendar year 2020 and scaled a new three-month high.

It has moved up by 38 percent from its bottom of 7,511 levels and completed a strong move price-wise and time-wise over the past 13 weeks with broad-based participation across sectors and stocks.

Mid-caps and small-caps have outperformed by a wide margin in the current month with strong moves coming in the last fortnight.

We expect markets to witness some correction as the upside looks capped on the higher side in the range of 10,500-10,600 levels.

The last leg of small-cap and high beta sectors also signals caution from the current levels. Any negative news flow from the global front or any geopolitical concerns could accelerate the selloff as the second wave of COVID-19 crisis continues to be a concern for India and the world.

The July month derivatives expiry is very long of 5 weeks and we expect volatility to increase if India VIX crosses 35 levels on the higher side.