On December 7, Nifty registered a new all-time high at 13,366, which is 78 percent higher from the level of 7,511, the March 2020 Low of Nifty.

The benchmark index took just eight-and-a-half months to register a rise of 78 percent, which is remarkable.

Nifty is now almost 1,000 points up from the previous all-time level of 12,430, registered in January 2020.

However, the Nifty Smallcap index is still down 30 percent from its all-time high, registered in January 2018.

The Nifty Midcap index is also yet to cross its previous high and is trading down 8 percent from that level.

There is a good chance that investors could get a return from here as well. The only thing required is the selection of good quality stocks from the mid-cap space.

At present, more than 88 percent of the Nifty stocks have reached above their respective 200-DMA. This extreme reading indicates an overbought scenario for large-caps in the short-term.

The benchmarks are likely to pause the rally after a couple of percentage of addition.

However, if we see the NSE500 universe, 81 percent of the stocks are above their 200-DMA, which is also a high reading but still lower than the bullish scenario of the year 2017 and 2014.