1. FIIs selling pressure is reduced and expected to reduce further in view of FED keeping its rate unchanged
2. Last two quarter earnings growth for NIFTY is negative
3. NIFTY is trading at 22 PE and it is most expensive market in world
4. Latest GDP growth is lower than previous qtr GDP growth. Export growth is also negative.
5. Signal from Artificial Intelligence based analysis of NIFTY technical data (price and options) as well as of its components is to stay out of market
6. China issue still not sorted out.
So for a long term bull trend to continue NIFTY earnings needs to grow. However, in the short term, due to recent correction, positions can be taken in good quality undervalued stocks.