The market, which surged over 4 per cent previous week, may continue to test

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new highs this week as experts believe some steam is left in the market, thanks to continuous infusion of liquidity by the foreign institutional investors.

Though there are no fresh near-term triggers for the market, the investors would soon start building expectations on September quarter results as many large cap companies have now paid their advance taxes for the quarter, analysts said.

“We believe our market may trade north for some more time. FIIs are heavily investing into Indian equities and are likely to anchor this rally ahead. Large cap stocks are doing well. Many big firms have now reported advance tax numbers. Investors would now keenly wait for September quarter results. Global cues may till then dominate domestic sentiments,” said Parag Shah senior manager for advisory (equity) at ShareKhan.

According to Sebi’s website, FIIs have so far bought Rs 15, 670 crore worth of equities in this month.

Prakash Diwan, head of Institutional business at Networth Stock Broking is of opinion that markets may now move in a consolidation phase. “But, during the phase, the Nifty may broadly trade between 5,750 on a downside and 5,950 on an upside. September quarter results are nearby and advance tax numbers are out. The results may come in line expectations. Only some severe global cues may hit sentiments in the short run.”

Shah expects IT and capital goods stocks may perform well going ahead. “Large cap IT stocks may gain in near-future. Stocks of capital goods sector such as L&T and Bhel may also perform well.

Meanwhile, RBI last week raised key rates in its September policy review.

“The RBI raised the rates at which it lends and borrows, effectively narrowing the liquidity adjustment facility (LAF) corridor to 100 basis points. The central bank justified the action owing to a need to contain inflation pressures and normalizing policy rates,” said fixed income research (Asia) for Deutsche Bank in a note.

Most of banking stocks were up last week except SBI, BOI and Canara Bank which were down 1.69 per cent, 0.33 per cent and 0.30 per cent, respectively.

The BSE Sensex zoomed 795.09 points, or 4.23 per cent, last week to end up at 19,594.75. The 50-stock index soared 244.90 points, or 4.34 per cent, to 5,884.95.

“The Nifty Volatility Index has increased by around 3.39 showing a bottoming out pattern. Nifty has support at 5849 and 5775. The Nifty put-call ratio is well above 1.2 and it is at 1.73 suggesting strong put option buying, which will help the market to remain in the positive territory in coming days. More buying opportunities can be seen in this sector and it is likely to move towards 6000 plus in the short term,” said Alex Mathews, head of research at Geojit BNP Paribas Financial Services.