Creating short positions in the market; expect 1,000-4,000 pts correction post election: Aditya Arora

economictimes.indiatimes.com:

Aditya Arora, Adlytick, says “markets are pretty overvalued in terms of PE ratio, price to book ratio and technically also. We believe there will be a correction of 1,000 to 4,000 points from the top. If we see a good outcome in the election, there could be a short-term spike in the market. So, whatever is the top for the market, from there we see a correction of 1,000 to 4,000 points. We can see froth all over – in midcaps, smallcaps and largecaps also, although largecaps are already correcting. So, we are creating short positions in the market on the rise.”

What is your view on the market right now? How would you trade in Nifty, Bank Nifty? What is your positioning? Or are you sitting out right now?
Aditya Arora: We are positioned in the market, preparing for a 1,000-4,000 point of correction in Nifty post election. The reason is that a lot of people have priced in great growth in markets post election expecting the BJP government to come back to power. If you look at PE multiples of various stocks and sectors, then it is touching sky high levels.

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We feel markets are pretty overvalued in terms of PE ratio, price to book ratio and technically also, markets are very expensive. Our theory of correction of 1000 to 4000 points is from the top. If we see a good outcome in the