C Jayaram of Kotak Mahindra Bank says that based on the flows seen in the last few days, there is more conviction in the market now than there was in the past couple of months.

He says that in the short term there probably is more upside than downside.  

"I think at this point we are still seeing some strength in the market. So my belief is that at these levels in the short-term atleast there is probably more upside than downside."

From a valuation perspective, Jayaram says, "It’s very difficult to try and defend these levels or to talk about upside at these levels. It has sort of got counter balanced by strong flows and by extremely good results for the second quarter. At this point of time the weightage is towards that momentum and less towards the value angle."

He also says that a correction right now would be a positive thing for the market.