Valentis Advisors on Tuesday said that market is probably range bound for the next few weeks.

In an interview to CNBC-TV18, Jyotivardhan Jaipuria, founder and managing director, said, "What I am worried about is probably we need to see a correction in the market in general at this point and if the general markets correct, the midcaps will correct also. I do not think they will correct too much differently from what the larger markets correct, but we will see both the largecap and the midcap probably getting into a bit of range bound phase."

Jaipuria is expecting a fall of 5-10 percent in the markets, "We could be in the 5-10 percent range. We are holding some cash for that sort of fall. Everywhere markets are expensive, so, when markets are cheap, then you get less worried about this but when markets are expensive, then sometimes just small catalyst creates a fall which is much more than what one anticipates.”

According to Jaipuria, the trigger for the correction in market would be global, like a fall in global markets which India will be a part of.

"If we look at specific India triggers, then probably it could be assembly elections as opinion polls are showing that things are not going the BJP way. If let us say, we get all the three states, BJP losing or opinion poll show that at least two of the three they are losing, if they lose just one Rajasthan, then I think the market is probably building that in. However, if let us say opinion poll start indicating that BJP could lose all three of the states, then that would start worrying the market," Jaipuria added.

First Published:Aug 21, 2018 2:52 PM IST