Nifty tested the support range of its 20-day average and witnessed a pullback from lower levels with broader market recovery. Nifty Midcap and Nifty Smallcap indices have outperformed, gaining 3.1 percent and 4.3 percent, respectively, while Nifty has gained 1.2 percent for the week to date. The benchmark index has completed its time-cycle up-move from its bottoms of 7,511 in March and from its higher bottom of 8,800 levels in May 2020. We have witnessed a strong up-move across sectors and stocks. In the last 4 weeks, mid-caps and small-caps have gained strength. We believe one should book profits at current levels and increase some cash levels in their portfolios and wait for some corrective action in broader markets. A breakdown below 11,150 from its short-term average would trigger a sharp selloff in index pivotal and broader markets. With the derivatives expiry next week, we expect the markets to trade volatile with rollover movement in individual sectors and stocks. There are a lot of stocks under the ban in the derivatives segment and they would witness unwinding of the positions.