Nifty has rallied more than 1000 points and in this process we have absorbed a lot of news like IIP, Low inflation, above average rainfall estimates and a rate cut, with that, technically we are trading above 200 DMA which is at 7860. So everything is discounted and we are yet to see earnings of some major corporate houses. Having all of it in perspective, for a day or two we may see correction due to profit booking which is overdue but as long as market is above 7860 we are bullish in market and may test higher target of 8100.

PSU banks reflected RBI’s move of easing the norms for provisioning while Reality sector saw profit booking after a decent rally. Metals and Banking, both private and PSU may lead the current rally while after a recent correction pharmaceutical stocks may also attract buying at lower levels.