NSE Nifty touched an all-time high of 10,191 on Friday and closed at all-time high of 10,167. Stock markets have offered nearly 20 percent return this year with some stocks offering even more than 100 percent return in the last two quarters. Investors have turned cautious in many blue chips and we have witnessed strong selling pressure at higher levels.

Market analysts believe that Nifty can scale new highs if it strongly closes above 10,200 level. Banks have not participated in the recent pullback in the stock markets. Few banks have declared quarterly results, which have remained below market expectations. And, market analysts are not having high expectations from public sector banks considering higher provisions for bad loans.

Market expectations from private banks are high. IndusInd has announced merger with Bharat Financial Inclusion. The stock would be worth-watching in the upcoming trading sessions.

The economy is facing a sluggish growth due to introduction of GST by Indian government. However, some sectors could see positive impact of GST in the upcoming quarterly results. Pharmaceutical sector is expected to post lackluster numbers due to GST.

The worry among market participants is continuous selling by foreign investors. Majority of buying is coming from domestic funds and this could lead to a long period of lower valuations if the companies fail to post strong results in the latest quarter.