The week saw some buying interest in select pharma names with Wockhardt and Ranbaxy Labs spurting on huge volumes.
Technology stocks continued to remain subdued even as the rupee gained ground against the dollar.
Markets are expected to trade in a range ahead of the earnings season which kicks-off with the results of Infosys on April 15. The next couple of months will also see dividends being announced and some PSU banks could be attractive buys considering the dividend yield that one is likely to get from these stocks.
Heading into next week markets may continue to remain range bound considering that they have rallied significantly in the last 10 days. In fact, buying from foreign funds also seems to be slowing down. On Friday they net bought in the cash market to the tune of only Rs 232 crores.
Every rally may now see selling pressure, but, much would depend on whether flows from FIIs continue. It's likely that the rally may pause for a while before one final burst before the elections.
Also, the earning season is set to unfold with technology stocks like Infosys, which might not report any great set of results. Infosys has already hinted at subdued set of revenues for Q4 going forward.
Even high beta names from the metal and capital goods space have rallied substantially. Hindalco, NMDC and PSU banks have gained 20-30 per cent in the last one month on hopes of a stable government led by Narendra Modi at the centre.
It's difficult to find pockets of undervalued stocks at the moment, though PSU banks may still be attractively priced at the current levels.
It's advisable to take only little exposure ahead of the election results.