Markets are likely to see a limited upside of 5 per cent from the current levels till November and may dip to 19,000-19,300 levels on corrections, according to a Bank of America Merrill Lynch report.

“We expect markets to see limited upside of 5 per cent from current levels till the Assembly elections in mid-November. However, we continue to expect corrections in the market and expect dips to 19,000-19,300 levels to offer better buying opportunities,” Merrill Lynch said in its India strategy report.

“Our overall view continues to be a range bound market for the year. The market will continue to see hope of an improvement accompanied by negative news on earnings, economy as well as worries on politics,” the report further said.

The market has been amazingly range bound year-to-date brushing aside a massive depreciation of the rupee. A few months ago, if anyone had thought about 10 per cent depreciation in the rupee, investors would have expected the markets to be much lower than where it found support a couple of days ago.

Weighed down by high current account deficit and coupled with ‘Fed—tapering’ fears, the rupee has been one of the worst performing currencies among the emerging markets countries.

The instability in currency has also brought volatility in markets as expectations of rate cuts get pushed back, the report said.

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