'Not a good time to be in equities': Chartist warns of multi-month uncertainties ahead

Rohit Srivastava, founder of Indiacharts & Strike Money is currently sitting on 100% cash on a personal level. For his clients, he has recommended cash levels to be between 30% to 50%.

In an interaction with CNBC-TV18 on Tuesday, Srivastava warned that this might be a very early stage of a major or significant trend reversal in the global markets.

"We are in very, very early stages of what might end up being a major or significant trend reversal in global equities. It's been a good ride, but I think it's gone away from what looked like only about trade to becoming a geopolitical problem," Srivastava said, adding that since Geopolitical issues are not resolved overnight, there could be a multi-month phase of uncertainties.

"In short, it is not a good time to be in equities. You should create as much cash as you can," Srivastava said.

Indian equities have seen a significant reversal from the record high levels that the Nifty 50 index had hit just at the start of the new year. From the January 2 peak, BSE-listed companies have shaved off close to $300 billion in market capitalization.

The fall comes on the heels of the sell-off and risk-off sentiment across global markets after US President Donald Trump once again ramped-up his tariff rhetoric, threatening to impose a 10% tariff on European allies who do not align with his plans to acquire Greenland, the self-governed territory under the Kingdom of Denmark in the Arctic region.

In response to Trump's tirades, US futures are also selling off sharply as the cash markets on Wall Street were shut on Monday on account of a holiday.

Srivastava believes that investors should continue to prepare for the worst and then hope that things do not get as bad as previously expected rather than getting caught on the wrong side.

"So, you should prepare for 10-20% kind of downside in global equities. And it's better to prepare for that. And then think about it later. Sometimes people will come in and question, will it be so much or will it be that much? What that approach does is it doesn't help you to prepare. So, I would say prepare for the worst and then let's hope it doesn't get that bad," the chartist said.

BSE-listed companies wiped out ₹10 lakh crore in investor wealth in a single trading session on Tuesday.