Stocks maybe headed lower after benchmark indices hit a 10-week low, following worries over escalating tensions in the Middle East and Saudi's bombing of targets in Yemen.

Brent Crude prices have now crossed the $60 a barrel mark and expect Indian Oil marketing companies to hike petrol prices at the end of the month. If crude prices rise it would increase inflation.

With unseasonal rain across parts of the country wrecking havoc to crops, expect food inflation to also creep in.

All in all, the Reserve Bank of India's hands maybe tied in terms of cutting interest rates. This may all have a telling impact on the stock markets in the near future.

Indian Markets Are Very Expensive

With earnings having failed to pick-up, it's extremely difficult to justify any price increase in stocks. In fact, the coming quarter for the period ending March 2015, maybe a big disappointment for earnings.

All this may have a telling influence on the markets, which maybe clearly headed lower. Sell on every rise is the new mantra being suggested by traders and investors.

The carnage in stocks from the banking sector has been huge. The sudden selling in blue chip stocks like HDFC Bank and HDFC is worrying investors.

There seems to be some pressure from FIIs and it would be interesting to see what happens in the new derivative series.

But clearly, the message is to go short on every opportunity in this market. If investors wish to look at buying opportunities, they should wait for a couple of months.

In all probability you would get a Nifty level of below 8000. Fundamentally speaking it would then be worth buying into stocks at that levels.

At the current levels the markets look a little over priced. And if interest rate hike in June come through in the US, brace for a deeper correction.

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