Indian markets are digesting last week's monster rally and some stocks are looking slightly rusty. Do you think the big move in January is now behind us?

P Phani Sekhar: It is good that we are consolidating and trying to digest the rally that we saw in the last calendar year. However, with a possible diesel price hike around the corner and speculation about new reform measures and more importantly the insurance and the pension bill being reintroduced during the budget session - all these will keep the market in good spirits. Before we talk about any meaningful correction, a short at 6300 is very possible. Therefore, pre-budget rallies are something that we have experienced in the Indian markets.

It seems to be a good time around the first or second week of February to test those levels. As we approach the budget, there is bound to be considerable nervousness especially in the wake of the government being unable to meet its fiscal deficit target and what happens next year. This is because there is bound to be a good amount of populism in the next budget. Therefore, we should take a short at around 6300 levels and thereafter if we get nervous as to what happens in the budget, it might pave way for some correction.