Indian Markets are waiting for quarterly results for the next move. As the economy has been showing signs of slower growth, Indian government swung into action and announced reduction in corporate tax rates. Markets have cheered the decision with massive gains over last few trading sessions. Stock Market outlook by Epic Research follows....

Nifty continues the celebration with a rebound after two days of profit booking and cool off in volatility. The sudden rise and follow-up profit booking were seen on two consecutive days. The important aspect here is that Nifty was able to sustain the lower levels of 11400. Today's rebound was seen with buying coming back in the overall broader market. The leaders in initial jump were seen extending the gains such as Auto, Financials and Metals.

Derivatives data point to 11400 - 11300 as immediate support while a huge long build is seen in strikes of 11700 - 11600. Though after such a sharp positive move there may be range-bound action between a broader range of 11750 - 11500. Secondly, there will be FOMO(Fear of missing out) that will be seen as now any dip would be used. The tax cuts is a huge move for the overall market and this is going to play out in the coming days as there will be stock rotations and portfolio construction. Investors should seek value during these times for a longer time horizon. We are upbeat on Autos and Financials.