Peak 75K some feel weary, but most remain bullish

"Markets came off highs primarily due to at high levels because Nifty and Bank Nifty are entering overbought levels," said Andrew Holland, CEO-Avendus Capital Alternate Strategies. "The markets have scaled new highs due to coming back after the cautiousness in mid-March." A of 1% to 2% is normal, but no steep declines are expected, he said.

The Midcap 150 index shed 0.25% and the Smallcap 250 ended almost unchanged from the previous day. Out of the 3,951 stocks traded on the BSE, 1,554 rose, while 2,288 fell.

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"Some fatigue is setting in, especially with the benchmark indices," said Mehul Kothari, deputy vice president - technical research at Anand Rathi Brokerage. "Time-wise corrections are normal in a bull market; however, the current undertone is bullish." He added Nifty could move between 22,500 and 23,000 levels in the near-term.

Foreign portfolio investors (FPIs) net sold shares worth ₹593 crore on Tuesday, while their domestic counterparts were buyers to the tune of ₹2,257 crore.

Investors are now awaiting the March of companies for further direction. "In the upcoming results season, the market is expecting that the worst is over for banks with respect to the pressure on net interest margins," said Holland. "If the commentary from banks remains positive this quarter, then markets are likely to move up to new highs."

The Bank Nifty is expected to move to 50,000 levels in the near term, said Kothari. The index closed at 48,730.55 on Tuesday.

Kothari expects action in the market to be restricted to a fewer stocks. "The stocks are likely to move up based on the earnings performance and results are expected to set the mood," he said.

TCS is scheduled to announce its March quarter results on April 12.