Nischal Maheshwari of Centrum Broking highlights market triggers like monsoon and the earnings season. Top picks include HDFC Bank and RBL in the private sector. Paytm s unclear revenue model makes it best avoided at the current prices. The metal sector is facing challenges with rising costs as well as stagnant prices.
Overall, analysts maintain a positive yet cautious stance as Nifty 50 is set to retest its record high level, but there could be bouts of intra-day volatility. A possible breakout attempt for Nifty 50 above 22,150 could lead to an uptrend to inch towards 22,500+.
Maintain a neutral allocation to equity with a long-term view. Increase exposure when valuation is cheaper, especially in small and mid-caps, says Nilesh Shah of Kotak AMC.
"Overall, the big trigger will be the Fed rate cut which should happen by March, April and we will have to see the magnitude of that so the big defining trend for this year will be rate cuts across the world," says Ajay Bagga, Chairman, Elyments Platforms
"The big trigger now is that corporates will start looking at better performance ahead. One of the biggest inflation triggers is on the commodity side. Many of the companies, be it on the industrial side be or on the capital goods sides, are exposed to a large inflation footprint that came in with the commodities surge. That is now gradually abating and could provide the next possible trigger for most of the goods manufacturing companies."