The NSE Nifty might test the 10,600 range, Ashwani Gujral, market expert, said.

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Despite the global markets closing in the red, the Indian markets recovered and closed at day's highs on Monday. The BSE Sensex closed up 113 points at 34,305 after a 406-point trading range. The NSE Nifty gained 48 points to 10,528.

The monsoon, which can impact the agriculture stocks and food prices, has been predicted to be normal in the first stage, according to a recent India Meteorological Department (IMD) report, indicating a low probability of a deficient monsoon.

"So far, we have maintained the 10,400-10,500 band. After a large rally when you have a sideways move, often you come out on the right side. Today the monsoon forecast is a bit here and there. So, that may again make you probably go down to 10,450 thereabouts. Finally, all dips are getting bought, so at some point, we should get towards 10,600 and maybe even higher," he said.

Most brokerages found Infosys' margin guidance of 22-24% for the next financial year to be a bit conservative, leading to over 3% fall in the stock.

On Infosys, Gujral said, "If we break today's low, then the short term trade is over, long-term investors may have bought today but, they are willing to see more sideways. So, keep Rs 1,100 type of stop loss. In case we start moving above Rs 1,200-1,210, then maybe even Rs 1,300 could be on the table. You should often be with the strong stocks which are making new highs. Infosys doesn't quite fall into that category. If you have to do short-term trading, you get into things like Jubilant, Titan, Escorts etc."

Other IT stocks had a strong day yesterday on the back of falling rupee.

On the global front, Asian stocks edged higher on Tuesday, tracking Wall Street gains as the focus shifted to corporate earnings and looming economic data from China amid signs Western-led strikes on Syria weren't likely to escalate.

The dollar pulled back along with safe-haven US Treasuries as investor risk appetite improved in the broader markets. The global markets pulled up as the tensions in Syria eased.

First Published:Apr 17, 2018 7:18 AM IST