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The resilience of the market even in the holiday season, which is normally devoid of much action, is an indication of its underlying bullishness, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

The global support to the market from the US market where the S&P 500 is close to all-time high is significant, he said.

There are areas of concern which investors have to be careful about. Several IPOs getting heavily oversubscribed is an indication of exuberance.

There is frenzy in the mid and small-cap segments where valuations are excessive.

The rally in the PSU space, in some segments like ship building, are being driven by hope based on order inflows. The market is ignoring the execution challenges here, he added.

Investors should give priority to high quality bluechips which are doing well and have good earnings visibility. A correction in the broader market is inevitable, he said.

BSE Sensex is up 463 points at 71,800 points on Wednesday. Ultratech Cement, Tata Motors, Tata Steel are up more than 2 per cent.