A few negative surprises and market could have an exaggerated correction: Dipan Mehta

economictimes.indiatimes.com:

Dipan Mehta, Director, Elixir Equities, says “it is time to be a bit cautious and let there be a time-wise correction, price-wise correction and then maybe assess whether it is worth investing in stocks. At these levels, a lot of stocks do not have margin of safety and a new earning season will start in about four weeks' time. And if there are a few negative surprises over there, then we could have an exaggerated correction as well.”

Nifty has made a new high at 20,000. Where do we go from here on? Is there any amount of consolidation or profit booking that one should do or do you think this euphoria will continue in the markets?
Everybody in the market has been around for a long, long time, who basically relies on fundamentals for his judgment calls, has to say that, The market has run up a bit too fast, too high and some amount of consolidation, correction will happen.

When it will happen, we do not know but we are seeing more and more trading positions being loaded onto the market. And leverage positions also I suspect are coming through. So, it is a situation where we are near entering a parabolic zone, which means that from here prices can easily go into some kind of a bubble territory.
I want to say these are not levels to buy stocks.

Of course, there will be a few odd stocks which are still at attractive valuations, which have not run up. But by and large, if you are chasing the momentum stocks at these levels, you may be in for a rude shock. So, it is time to be a bit cautious and let there be a time-wise correction, price-wise correction and then maybe assess whether it is worth investing in stocks.