The underlying strength of the ongoing market rally is getting widely acknowledged. This explains the FII buying, though marginal, yesterday when the US 10-year bond yield was around 4.3 percent. DIIs have been smart to buy continuously when the FIIs have been selling. So, for DIIs there is room to book some profits, which they did yesterday. In the tug of war between FIIs and DIIs in recent years, DIIs have been the clear winners. So, watch out for the DII action.

An important trend now is the huge delivery based buying in the private banks, which are even now attractively valued in this market with elevated valuations.

Switching from over-valued mid and small caps to large private banks would be a smart move.