New Delhi, Feb 7 : An area of concern is the excessive speculation in low-grade stocks where many are doubling in a few days. These excesses of a bull market warrant caution, says V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

Investors should stay in the comfort of high quality stocks, he said.

A significant feature of the ongoing bull market is its ability to bounce back from dips. This makes the buy on dips strategy successful, he said.

The bounce back happening now is being led by IT and supported by autos and pharma even while Bank Nifty continues to decline. The fact that new leaders are emerging to take the market forward indicates that the uptrend is intact and new record highs are possible soon, he said.

Deepak Jasani, Head of Retail Research, HDFC Securities said US stocks ended higher on Tuesday, as investors digested the latest corporate earnings while Fed officials reiterated that they'd be wary of cutting interest rates too soon. Asian stocks climbed on bets China will be more forceful to prop up markets and as traders shrugged off a slew of cautious remarks from Federal Reserve officials.

BSE Sensex is trading at 72,291.05 points up by 104.96 points. SBI is up more than 2 per cent.

/IANS