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"The ongoing trend of largecaps outperforming mid and smallcaps is likely to sustain, going forward. FII selling and the countervailing trend of DII buying is likely to continue. This will impart strength to largecap financials, particularly banking stocks like HDFC, ICICI, Axis and Kotak which are fairly valued in this market with elevated valuations. Investors need not rush to buy the beaten down mid and smallcaps since there is more pain left in this segment where valuations continue to remain very  high. There can be individual cases of sharp rebounds in this segment. Zomato’s Q2 results indicate continuing acceleration in revenue and profitability. This is a stock to watch.

In the coming days the market will be looking forward to the outcome of the US presidential elections and its possible impact on the market."