In the last couple of days, the markets have held a bit of a range, as the global markets are pretty supportive. The markets are in momentum and have gained some more points. IT, metals, banking and auto stocks are attracting attention. The market breadth is also positive.

According to Sudarshan Sukhani of Technical Trends, Nifty could easily take out 3800, if the results from IT companies are better than market expectations. He believes that the markets are going to be range bound. “I am assuming that at some point in time this range will expand on the downside, meaning that 3,600 would be broken down because the market really knows the truth of what it will do. But I am not upbeat on the market as of now," he says.

Jayprakash Sinha of Ambit Capital expects earnings to be in the range of 27-28% for the full year, which is already factored in the prices. However, Sinha believes that the guidance from the IT companies and even the manufacturing side is more important to track. He further adds that in terms of valuations, the market has already cooled off from the top level. He states, "If we factor in 2008-2009 numbers, it provides some amount of opportunity even from the current levels.

So which are the stocks to watch out for?

On steel Sukhani feels that a range of midcap steel stocks are suggesting that steel prices will go up so that is the sector which traders should be buying into.

Both NTPC and Zee have excellent charts he feels. "I am upbeat on Zee; it is a stock that traders should be looking at regularly and buying on dips and investors also should be holding the stock at buying at appropriate points. The same applies for NTPC; NTPC again is a stock that could go against the market trend, should the market come down"

On sugar stocks he says that sugar prices worldwide are falling. Also, sugar charts for traded sugar futures are not showing any signs of strength and they are making new lows; so maybe this is a good time to stay away.

On Hindustan Construction, Nagarjuna Construction Sukhani says that they are doing the same thing that cement and banks are doing; they are all consolidating after having had a big beating. "Construction is not a buying opportunity; unless we have clear signals from the market these ranges could easily breakdown"

Jayprakash Sinha feels that M&M is looking strongest among all. "We are not recommending two-wheelers and Tata Motors is getting on the strength of Ace and Indigo. We are not very enthusiastic about both auto as well as auto ancillaries," he says.

On the construction or real estate stocks he says that there is some amount of pullback, but would not recommend them at this point of time. "What we are seeing is, if there are prices, which come down in the real estate side, or if there is a deferment or constriction to some extent or the price of steel or cement continues to go up, that will dent their margins" he says.

On cement, Sinha feels that looking at the volumes, there is not much increase but 3-4%. "Even if that happens and price stabilises, we will see a bounce back in the stocks," he says.