BANKS - THE ONLY CURRENT WEAK LINK

Select European markets, and US markets are trading at all time highs. India Midcap and Small cap indices are about to test the previous ATH of 2017. Strong Indian sectoral indices are IT, Metals & Pharma. FMCG and Power are about to breakout to new highs. Auto sector is in an interim correction phase after hitting highs & realty sector stocks are consolidating at 12 month highs. 

In this entire scenario, there are more reasons to be bullish rather than bearish. Data very well states that the lockdown effects have already been accounted for in the current prices and there will not be any surprise element to the markets due to COVID. 

However, the only weak link in the markets are private and public banks. One needs to have a very close look at the banks and see their performance on an immediate basis. If banks start dragging the overall indices, other sectors could follow suit. High probability scenario is that the banks will be the last participants in the ensuing bull run.