Mkts may correct 10% from current levels: JM Financial

Gautam Shah of JM Financial believes that bears are looking powerful at this stage, which means markets are due for a correction from the current levels. According to him, Nifty is likely to offer resistance at 3,490-3,500 level, while the Sensex may find it difficult to cross the 11,300-11,400 level.
Speaking exclusively to CNBC-TV18, Shah said markets may correct 10% from current levels folllowing which bear market will make a come back.
He advised investors to book profit at current levels. He reminded investors that the month of October and May have a bad track record, and "May might spoil the party for markets."
However, he is bullish on the midcap sector. According to Shah, worst for the midcap space is over and now there are chances of getting good returns.
Meanwhile, commenting on the global markets, Shah said most global markets are overbought at current levels. “However, 880 is an important level for S&P 500, and there is possibility of 10-15% correction in the US."