Moneycontrol
May 19, 2017 06:12 PM IST | Source: CNBC-TV18

Market giving an opportunity to buy for longer-term; infra, aviation look good: Pros

Corrections seem to be short lived, liquidity is arresting any serious declines. So market is giving an opportunity to buy for the longer-term, says Dilip Bhat of Prabhudas Lilladher.

The market today was highly volatile but ended the day on a flat note. The 30-share Sensex closed higher by 30.13 points at 30464.92, while the Nifty ended 1.55 points lower at 9427.90.

Market experts Dilip Bhat of Prabhudas Lilladher, S P Tulsian of sptulsian.com, Ashwani Gujral of ashwanigujral.com and Mitessh Thakkar mitesshthakkar.com in an interview to CNBC-TV18 shared their outlook for the market going forward.

Bhat says volatility in the short-term is to be expected since they have gone one way up and with inflow of liquidity providing a tailwind, some bit of correction is justified.

However, it looks like these corrections are short lived, liquidity is arresting any serious declines. So market is giving an opportunity to buy.

Moreover, market is in an over expensive zone, so one needs to be a bit careful in the short run but over longer term, there could be pick up in earnings in Q3- Q4  and as reforms take shape, corrections provide an opportunity  to buy for the longer term, believes Bhat.

One can look at spaces like IT, where valuations will catch up because they are fundamentally good stories. Even in pharma, the FDA fear is overplayed and so good cos will bounce back. Some other interesting spaces could be infra and aviation.

Gujral says market heading for a correction to the 20 and 50 day moving average, somewhere between that zone is a good level to get in that is between 9240 to 9350.

For the entire discussion, watch video
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