The markets at the current levels are over valued. Our markets have rallied a lot lately and a correction is definitely due here. Most of the global markets like US, Europe or even many Asian markets have been correcting for a while now. However the Indian Markets are still trading very high and we are yet to face any major corrections. I see all the experts claiming that Indian Market is going to outperform the global markets, but even if that is the case, we still have to face the corrections.

I personally believe that Indian Markets cannot continue rallying upwards if all the global markets are constantly going down. It is only a matter of time that people will start booking profits and we will fall big time. This has been forever happening that our markets behave in the very same manner as all the other global markets perform and they have went down whenever US, Europe or Asian markets have gone down. At the current levels, we have totally outperformed the peer markets but I dont think this is sustainable at all. If the global markets do not recover or continue to go downhill, our markets will also face a major correction.

If you have noticed, today we started falling unnecessarily even when Europe was hardly in the red. This 230 points down on the Sensex was yet another profit booking sign that can rule over the market in coming weeks. Now the only thing that can save our markets from going further down is positive signs on the global markets. If they correct more, we will also correct no matter how much strong our market looks like.

My sincere suggestion would be, if you have a lot of money to invest into the market, then please do not invest at the current levels till the direction of the markets is clear. At the moment downside is more prominent than the upside, so I would suggest to hold on to your investments till we see some major correction in the market. If we see markets around 5200 or below levels in Nifty, you can safely put in your money into the market because market’s trend is still positive on the longer term and so you are bound to make profits on the longer term.

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