According to Phillip Capital the markets are in over bought region. For the past 10 years the markets have been rallying on a long term basis. If we say precisely, the markets grew around 3.4 times in the past decade. So after this rally, this firm believes that, we are in the last phase of this rally and now it can fall even to 18,550 levels.
They have even cautioned that small and midcap stocks might underperform Nifty 50.
They strongly expect a correction. However we cannot predict anything accurately but it is important to be cautious.
So at this point of time giving more importance to the fundamentals is more important. Investors should be very much patient and should set targets for long term. Buying on dips is a good strategy. The options and futures are for experts who have a good experience in intraday trading.
It is said that most of the people in futures and options have incurred losses. So I recommend investors to do value investing for atleast 1 or more years.
Donot forget to get an opinion from a SEBI registered advisor for selecting investment options.
Also read: How can investors handle cyclical rally?
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