NEW DELHI: Nifty has been trading between 19,400-19,500 range for the last 6 trading sessions and has shown strength at lower levels, says Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.
Even on Tuesday, Nifty held on to its gains despite profit booking in several banking and Financial heavyweights.
"Going forward, we expect the positive momentum to continue on the back of healthy earnings, consistent FII inflows, and improving monsoon," he said.
Technology sector is likely to remain in action as TCS and HCL Tech will announce their result on Wednesday.
Domestic equities traded in positive territory after an encouraging handover from global peers. Nifty opened higher and remained steady throughout the session to close with gains of 84 points (+0.4 per cent) at 19,439 levels, he said.
Broader market outperformed with the Nifty midcap 100 and Nifty smallcap 100 up +0.9 per cent and 1.2 per cent, respectively.
Auto, FMCG, Pharma, and Consumer Durables were major gainers up more than 1 per cent each.
Defence sector was in the limelight on the eve of Prime Minister Narendra Modi's visit to France where they are likely to sign several deals including a Technology transfer agreement, he added.
Vinod Nair, Head of Research at Geojit Financial Services said the market now awaits the Q1 results, IT sector which kicks off on Wednesday, where expectations are muted with a focus on the sustenance of margin and improvement in long-term guidance.
The positivity also stems from China's anticipated stimulus to withstand economic growth and hope on the moderation in US inflation data.
The overall valuation for India is marginally above the long-term average, which is fair given strong earnings expectations on FY24.