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Market experts have been repeatedly warning of froth in the mid-and small-cap segments.

 And, the fear of sharp correction in this space has finally happened with 4.10 per cent correction in the Nifty small-cap index and 3.07 per cent correction in the Nifty mid-cap index on Tuesday, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Even after this correction, fundamentals do not support the valuations in these segments. Therefore, more pain is likely, he said.

On the other hand, high quality large-caps in banking, capital goods and IT are on stronger wicket. More selling in the broader market and buying in large-caps is likely in the near-term, he added.

Even though the undercurrent of the market is strong, fundamentals do not support a sustained rally. Crude at $92 is a big macro concern. The market is ignoring this headwind, he added.

Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher said Nifty witnessed a halt to the ongoing rally near 20,000 zone closing on a flat note while the broader markets witnessing heavy profit booking to the extent of 3-4 per cent drop in a single session.

The Nifty index would have the near-term support zone at around 19,820-19,840 levels with the sentiment maintained with a cautious approach. The support for the day is seen at 19,850 levels while the resistance is seen at 20,150 levels, Parekh said.

BSE Sensex is up 107 points 67,328 points on Wednesday morning. Powergrid, Axis Bank, Titan, Tata Motors are up over 1 per cent.