The government's proposal to cut corporate tax rates is expected to turn out to be a game-changer in terms of fundamental as well as charts perspective, said Gautam Shah, director and technical analyst at JM Financial Services. "This move is mammoth and has made the medium-term trend of the market very clear."

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The Nifty rising beyond the level of 11,150, which was an important resistant level for the last six weeks, was an indication that the shackles have been broken, said Shah in an interview with CNBC-TV18.

Looking at evidence on the charts (daily, weekly and monthly), the belief is that market is likely to see a lot more follow up and, while the market is currently digesting the recent gains, this is a very positive sign, he said

The Nifty could trade in the range of 11,450 to 11,650 for the time being but over the next days there could be a breakout coming above 11,650, noted Shah, adding that once that is confirmed, the market is likely to move towards 12,000 initially and possibly 12,300 by Diwali.

Higher the market moves, more participation is expected from sitting on the fence, said Shah. “With the global markets little more stable and most local factors in sync with equities for a change, this is a market that is likely to head much-much higher over the short and medium-term,” said Shah.

For Bank Nifty, Shah said the index is unlikely to see much downside from current levels. “Level of 29,700-29,800 is an area where demand is likely to emerge once again."

A rally in the stock market that is led by the Bank Nifty has always been reliable and genuine, said Shah. Over the next many weeks, the Bank Nifty could move towards 31700 and eventually to 32500, he added.

So even at current levels of the Bank Nifty, the risk-reward are justified. The stocks that have shown relative strength in the last couple of months, will continue to do well, he added. “This is a great buying opportunity, everything looks good on the charts, one should be heavy on it,” he said.

Talking about the capital goods space, he said the capital goods index even in the bad times it did not break down and respected support levels really well. When something like this happens it is an indication that in good times it will run away, which is what has transpired in the last 4-5 days.

According to him, the biggest opportunity right now is in the midcap space. “The recovery from lows is an indication that the rebound is genuine. I am looking at 2000-point recovery on the midcap index and have a target of 18,500 over the next couple of months,” he said.

“So the Nifty might not do anything special but broader markets are likely to see very smart moves and irrespective of what the Nifty does, there is a serious amount of money to be made in the midcaps and smallcap space,” said Shah.