The market could be going for record highs and the Nifty is likely to test 12,400 in the short term, says stock market expert Jai Bala of cashthechaos.com.

"On the short term, 11,625 was pretty important and the market has taken that out. However, before the markets turned down from 12,100, I had a price objective of 12,400 for the Nifty and that might get reactivated at the moment,” he told CNBC-TV18.

Speaking about the index from a long term perspective, Bala said, “In 1991, before the reforms happened, markets fell 40 percent in just 4 months and that has not happened now. The markets over the 3 months fell just 10 percent.”

“Sensex was going up from a very low base, it was about 947-957, around those levels. Markets also had a 20 percent rupee devaluation by the Reserve Bank of India, and that is not happening now. So with this in mind, you should know where to place your medium term objective, how bullish or how bullish not to get, that is the judgement you have to make. So, people do not recall history and that is the reason why people have losses in the market,” he added.

First Published:Sept 23, 2019 9:14 PM IST