Equity Markets: Where do we go from here?
The market is tired after a swashbuckling rally of last year. P/E multiple of 20-21 for BSE Sensex still shows market is overvalued. See more downside in the run up to budget and some recovery immediately there after as the market might discount a bit too much for fiscal consolidation before Feb 26. Go short the Nifty Futures for Feb settlement and long the commodities (particularly food and non food, leave out the metals though).
The market is tired after a swashbuckling rally of last year. P/E multiple of 20-21 for BSE Sensex still shows market is overvalued. See more downside in the run up to budget and some recovery immediately there after as the market might discount a bit too much for fiscal consolidation before Feb 26. Go short the Nifty Futures for Feb settlement and long the commodities (particularly food and non food, leave out the metals though).
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