The BSE MidCap and SmallCap indices have experienced a strong upward trend, with the MidCap index gaining in 10 of the last 11 sessions and the SmallCap index rallying for 11 consecutive sessions.

Since November 13, both indices have risen nearly 9 percent, with the MidCap index just 4 percent below its all-time high and the SmallCap index only 1 percent away from its peak.

This follows a significant decline from October to mid-November, during which both indices fell over 10 percent.

However, analysts are advising caution due to concerns about high valuations. They suggest that it may be too early to say that the correction is over and recommend a more selective investment strategy rather than a broad approach.

They also highlight that not all stocks within the mid and small-cap segments are likely to generate significant returns at current levels.