The Sensex will begin the week near the 36,000 points mark, which is a near record. For the markets all eyes would be on the Union Budget 2018.

The trailing p/e for the Sensex at neat 26 times is way higher than the long term average of 17 times. Even for a moment if we assume long term capital gains on shares is not levied, there could be another 3 per cent odd rally.

However, if it is levied, we could see a sharp reaction in the markets. One thing that must be emphasized all over again is the fact that we have seen a stupendous rally in stocks. You cannot make great money from buying stocks at higher levels.

One will have to dig deep to make money in stocks. One this is clear that the Union Budget 2018 would be agriculture centric. However, stocks from the agriculture sector have rallied a great deal. So, one would like to stay away from them as there could a sell on rally and you might get trapped in these stocks.

It is a good idea at the moment to stay away from stocks and wait for the Budget to be completed.

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