It is the homecoming of the victorious, and this is truly the story of the victory the market has struck out from last Diwali till now. Will the New Year usher in another bull run? Which sectors will shine? Kick start the New Year with strategies from Rakesh Jhunjhunwala, Samir Arora, and Ramesh Damani.

Investment Guru Rakesh Jhunjhunwala sees the Nifty trading in a 4,200-4,400 to 5,800-6,200 range next year. "It will be somewhere near its pervious top." However, he was quick to caution that breaking 6,100-6,200 on the Nifty and holding on to it is not going to be an easy task. "If you price in 2011-12 index earnings, which you would do by December 2010, then it could."

Samir Arora, Fund Manager, Helios Capital, says the new highs, if reached, will not be sustained in the next 5-6 months. "If all of us agree that we will not get to new highs, then theory would say that it might!"

Ramesh Damani. Member, BSE, says the bull run in markets is still on. "I would argue that what we saw from October to March or earlier was just a break in a bull market. The theory working in America now is that the falling dollar equals to a higher Dow. At some point it will stop, one cannot debase a currency and expect the market to keep going up."

When are markets likely to correct?

A number of market experts have been saying that the markets are currently overvalued and ripe for a correction. However, Jhunjhunwala sees the markets trending upwards. "They are not going to correct easily. Without that burst of a rise that correction is not going to set in."

How should you trade gold?

Damani advises investors to buy gold as it provides a safe haven if there is a global turmoil. "If there is a global turmoil, it is going to hit the Indian markets. The long-term trend lines are still intact, but it will hit the Indian market. So, gold gives you that insurance. I would keep a very close eye on gold over the next year or so."

Jhunjhunwala too is bullish on gold. He says it is the only asset class which has gone up for the last seven years and is now ready to go up for the eighth year. But he was quick to add that the investments in the stock market would give better returns. "We were in a kind of financial crisis in January and nobody knew when it will end. I don’t think there is that kind of crisis this year. Where you are going to store and keep the gold you buy. So, I guess it is better invested in equity."

The yellow metal also finds favour with Arora. However, he advises investors to stay away from the yellow metal. "It is like an alternative currency. But it may not be as interesting for Indians as you are already going to be in a strong currency."

Buy midcaps:

Damani sees panic buying in smallcap and midcap stocks: "If you see the first few midcap results, and if it is an indication of what is to come, there would be panic buying in smallcap and midcap stocks. One should by all means do bottoms up stock picking."

On power: