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The global rally in December led by the US market has lifted most markets significantly, and India was fortunate to have the lift from the state election results too, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

The 6 per cent rally in Nifty in December has heated up the market a bit and the bulls are likely to wait for the New Year for further action. High valuations continue to be a short-term concern, he said.

However, the global market construct continues to be favourable with the US inflation, bond yields and the dollar index trending down.

Buy on dips continue to be the best strategy in the present market context. Safety is in large-caps. Automobile sector is well placed for a cyclical upswing, he added.

Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher said Nifty after taking support near the 21,000 zone has witnessed a decent pullback to improve the bias once again and would need a decisive breach above the important resistance zone of 21,500 levels to carry on with the momentum and confirm a breakout for further rise in the coming days.

The index has maintained the strong uptrend as of now and only a decisive breach below 20,800 zone shall weaken the bias and expect further slide, Parekh said.

BSE Sensex is up 278 points at 71,384 points on Tuesday. NTPC, M&M, Wipro, Tata Steel, Powergrid are up more than one per cent.