The markets are going through some short term consolidation. Corporate results for the last quarter have been neutral to positive. The underlying trend still remains positive. We expect to go in to a period of consolidation moving forward. 7900 seems to be a short term resistance and 7500 the short term support. Markets should be playing in this region for the short term provided there are no macro triggers to break the support or resistance.
Fundamentally, the markets are trading slightly higher than their average Price to Earnings. It is a slightly tricky situation for the investor who is looking at past valuations to determine what kind of asset allocation he/she should be looking for at this moment.