Would you agree with that, seems like global rising tide kind of phenomenon and we are catching up?
Jai Bala: See, the markets are bullish but my take is that it is going to get very volatile from here on because in my opinion this is part of the very long-term topping process. So, what we are going to see is upsides that is something like 5% to 7% from here and once that is done, we are going to see a decline of about 18% to 30% depending on which sector you are liking at. And then, once that is done, we are going to see one more move towards all-time highs. So, that is the kind of trajectory I have for something like a 6 to 18 months timeframe.
So, be ready to take your profits when you see, from here on wear a trader’s hat, not an investor’s hat and in your core portfolio which is an investment portfolio, you might want to look at start booking profits once you see these record highs towards something like 25,600 to 26,000.
The kind of sector churn that we are talking about, what within charts would you say is ripe for a bit of a re-rating from here as well? Is it going to be the banking index because that was one of the big underperformers?
Jai Bala: That is right. See, watch the 51,960 on the Nifty Banking Index, once that is taken out, it is probably getting ready for fresh all-time highs. But I think that until that point you want to retain your patience. But from this point onwards sectorally you might want to know which sector you want to avoid. From that point, I would say definitely Nifty Realty is an avoid.
Also, Nifty Metals is an avoid. So, you can be okay, bullish with the rest of the markets, but these are the two sectors you need to avoid and I have been bullish on Nifty Pharma and Nifty FMCG. But everything is getting quite stretched and they are all getting to probably an exhaustion point. So be very selective and know where to not fish, that is more important than where to fish.