“At least half the stocks had genuine reasons to move like improving fundamentals and P/E rerating which has brought them at this level.
“These have to be held with a strict stop loss which is based on momentum indicators and other technical parameters, like RSI, etc.
Shah said the broader markets were expected to undergo healthy consolidation after a 22 percent rally, amid a robust price structure.
“We remain cautiously optimistic on markets, although we don’t rule out intermittent corrections due to expensive valuations.