This is not the time to build a portfolio and investors should liquidate their positions, says stock market guru Jai Bala. In an interview to CNBC-TV18, Bala shared his readings and outlook on markets, specific stocks and sectors.

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"If you look at the 2018 high of the Nifty, it was 11760. The Nifty has crossed that high and registered fresh record highs four times and yet the markets have gone nowhere. In fact, if you compare the market at current juncture to where it closed at the end of March, it has virtually gone nowhere. So, it has been range bound. When a market makes fresh record highs and doesn't get anywhere, that is a clear sign of distribution. This is the reason I have been saying since the beginning of May that this is not a time to build a portfolio. it is time to liquidate your positions even if you are holding from 2013," he pointed out.

Further clarifying his view, Bala said: "What we are seeing is an end of a move. I have been projecting a level of 12400 for the Nifty and I am willing to let go of the last 300 points given that 12103 is the minimum level required for market to top out. I am not saying that the market has topped out. The market is going to go to 12400 but the important thing is one needs to have a change in attitude. You need to get very disciplined and use every rise in the market as an opportunity to get out of your long-term positions. This is a very important juncture in the market, use the opportunity to exit your medium- to long-term positions."

The market expert observed that the autos had been a major disappointment. "They are in a weak spot. Maruti is at critical support at Rs 6,300. While TVS Motors was holding support at Rs 440-430, it did not do much, it did not get beyond short term rallies. That has been a major disappointment for me," he said.

On Reliance Industries he said, "If you recall from our February 2016 interaction, I had said Reliance will go to Rs 1,700-Rs 2,300 and if you look at the adjusted price it has gone to Rs 2800 and that is actually topping out. So, that is going to be a key factor for the market and that is going to turn lower. There is a possibility to fit one more fresh record highs but it is not a necessity, so that could add pressure."

According to Bala, the only thing that is holding up the market strongly is the private sector banks. "ICICI Bank, Axis Bank and HDFC Bank are looking strong but the momentum is waning there also," he added.

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First Published:Jun 21, 2019 4:58 PM IST