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 The outcome of state election results hints towards continued uprun in the market, Dhiraj Relli, MD & CEO at HDFC Securities, said on Monday.

While part of the outcome was discounted in advance, there is a scope for a further upmove, discounting the positive surprises coming out from the results, he said.

“Having said that, we could witness some profit taking at higher levels due to end of a near-term uncertainty," Relli added.

If FPIs indulge in large short covering in F&O markets and increase momentum of buying in cash markets post these results, Nifty could keep rising at a healthy pace beyond a couple of days.

Markets will also look forward to fresh triggers from now (other than flows) till the middle of January, even as a lot of FPIs will reduce their activity levels post December 15 due to year-end holidays, he said.

Vinod Nair, Head of Research at Geojit Financial Services, said that in the coming week, investors’ attention will mostly be directed towards the release of service PMI data from the US, India and China, and the RBI policy meeting.

However, the growth outlook might be positively tweaked. The gradual return of FIIs in November signals positive momentum to continue, he said.

The market soared to new heights this week, decisively breaching the key resistance level and closing strongly above 20,000 levels, he added.

The Indian economy received a substantial boost from strong Q2FY24 GDP figures and a notable surge in manufacturing activity, significantly enhancing the growth outlook. The IPO market maintained its vibrancy, highlighted by Tata Technologies’ monumental listing, fostering increased investor confidence in riskier assets, he said.