It’s tough to time a new bull market but book some profits & get more into midcaps: Sanjiv Bhasin

economictimes.indiatimes.com:

Sanjiv Bhasin, Director, IIFL Securities, says now onwards, it is going to be more stock specific. There are some midcap stocks which can give a huge delta. Maybe largecaps are close to a top and so maybe a 100 points more from here there would be some sort of consolidation because if we keep going up parabolically, then the downside will also be fairly sharp when we see the correction.You had said we will make new highs in June. It happened at the end of June but where do we go from here? Are you getting a bit of over enthusiasm and a toppish kind of feeling for the market or do you see higher levels?Nifty was closer to 17,200 when I told you we will hit new highs by the end of June and it will be followed by a correction.

But this market seems unstoppable. There are two main reasons; one, FIIs are underweight and turning bullish now. Also, believe it or not, mutual funds sitting on 6-7% cash is why the relative performance of NAVs has been extremely poor and now there is a catchup trade.

But the markets are now showing a lot of overdrawn reading. So it is not bad to book some profit and sit on the sideline. But like I said, timing a new bull market is very difficult.

We were overly pessimistic at 16,800; 18,500 is the new equilibrium and this is the new bull market. So now, it is going to be more stock-specific. I still think there are some midcap stocks which can give you a huge delta.