On the downside, support is established at 10,700 - 10,650. These are important for this move and a breach of these levels will see a downward move to take the index to lower levels of 10,200 - 10,250.

Indian stock markets have been ahead of most emerging markets in 2018. India is set to offer attractive returns as earnings recovery pulls in foreign investors.

2019 could be a good year for investing in equities.  At the beginning of 2018, there was unbridled optimism, in contrast to the beginning of 2019. It is said that to make a bull market, you need to climb a wall or worry.

While a large upmove from the current Nifty levels of 10887 on Jan 15, 2019 seems unlikely, Nifty can still attempt to rise to 11,200-11,300 levels before correcting. In the process, a lot of stocks and sectors may sequentially undergo upward correction of the recent fall.

2018 is expected to post Apple's worst performance in the country since 2014 in the face of the high prices that iPhones command and the intense competition from OnePlus.