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"There is a clear message from the market now. Despite high valuation, global headwinds from elevated inflation, slowing global economy and an ultra-hawkish Fed, the domestic market has been surprisingly resilient. The tape is signalling momentum and bullishness. Investors should not 'fight the tape' and take a contrarian view, at least in the near-term.

The market may be discounting the robust growth revival in India and the consequent earnings growth.

The buy on dips strategy has  worked very well in this rally and it makes sense to continue with the strategy.

Domestic economy-facing segments such as banks, autos, capital goods, telecom and FMCG will continue to do well. If the rally is to sustain from the current levels, it will need support from the beaten down IT segment, which looks good from the valuation perspective."

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