The Indian stock markets are currently in a neutral range with no significant movement either upwards or downwards as the worst is already over, according to Shrikant Chouhan, head of equity research at Kotak Securities.

“The market is not going anywhere. It is in the range. I am not expecting the market (Nifty) to fall below the levels of 22,000 so easily unless and if something goes really wrong in the US market,” he told NDTV Profit.

“I believe the worst is already behind us. For at least the next few months, I expect the market to trend higher, potentially reaching 23,000,” Chouhan said.

Large-cap stocks like HDFC Bank Ltd. and ICICI Bank Ltd. are doing well, though information-technology stocks may see some short-term pressure. IT stocks are likely to witness a further sell-off of 5-8% in the near term. Following this dip, it will turn attractive to investors once again, according to Chouhan.

Commenting on the broader outlook, Chouhan said the market was close to important support levels, advising traders to create long positions.

“In the very short term, 22,300 will act as major support. Below that, we can expect weakness. For any long position, protect it with a stop loss at 22,300 and we can expect a breakout above 22,600,” the analyst said.

Chouhan said the contract-development-and-manufacturing-organisation and pharma stocks were doing really well. “We like Divi’s Laboratories near 5,700 levels, with a stop-loss below 5,600 or 5,550 if there’s a lower opening.”

“We also have a bullish view on a few auto companies as many have fallen to extreme levels, and we could see activity in stocks like Tata Motors and Mahindra & Mahindra,” he added.

Chouhan said the non-banking-financial-company space was expected to offer more stability, with Bajaj Finance Ltd. showing signs of a long-term breakout. He also sees potential in Shriram Finance Ltd. if the market moves upward.

Disclaimer: The views and opinions expressed by the investment advisers on NDTV Profit are of their own and not of NDTV Profit. NDTV Profit advises users to consult with their own financial or investment adviser before taking any investment decision.

. Read more on Markets by NDTV Profit.IT stocks are likely to witness a further sell-off of 5–8% in the near term, he says.  Read MoreMarkets, Notifications 

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