Indian Stock markets closed lower last week. After few weeks of rally, the stock markets were looking overheated. Technical experts have also started talking about small correction for Indian Stocks. Also, Monsoon is a major concern for the country's growth. Some sectors have already started feeling the heat of low than average rains in India.

As Global markets were mixed during the last trading session, one can expect Indian markets to remain rangebound and some sector specific moves.

Major Stocks to watch include, Reliance Communications, Reliance Capital, Tata Power, Bharti Airtel, ICICI Bank, PNB and DLF.

On Friday's trading session, all sectoral indices closed lower. BSE Auto index was down by 220 points at 5457. Bank Nifty and Capital Goods indices witnessed sharp correction. Mid Cap and Small Cap stocks have also witnessed two days of correction.

Among major losers were Suzlon Energy (down by 6%), Reliance Communications (down by 5.7%), Unitech (closed 5.6% down), Maruti Suzuki (down 5.2%) and M & M (down by 5.1%).

Other major losers on NSE Nifty were Tata Power, Reliance Capital, Ranbaxy Labs, Idea Cellular, Bharti Airtel and BHEL. Banking counters include SBI, PNB, Axis Bank, ICICI Bank were all down by over three per cent.

We would suggest caution to traders as there is no major trigger for the markets. Indian markets have seen a good rally in the recent past and valuations look over stretched. We will suggest unwinding small percentage of positions at current levels. Markets may stay in a range before making a decisive move in positive or negative territory.

Major broking houses are suggesting buy or hold calls for companies with consistent performance in Technology, Oil, Energy and Banking space. Some real estate companies are with good future plans, however, at the current stage, they are with high risk.