Nifty around 5600: Is it time to buy now?

It was an extremely disappointing session on Dalal Street. The markets came off the mid-week break on a firm note, but soon expiry jitters set, the Nifty plunged 83 points to close just about the 5,600 mark, while the Sensex shut shop at 18,684 down 285 points. The benchmark Nifty shut shop below the 200-daily moving average (DMA) of 5,619 and touched the four and half months low at close today.

Is it time to buy now? Experts feel that one can use this downside and buy for a long-term horizon. According to Toral Munshi, Head of India Equity Research, Credit Suisse Wealth Management, the domestic macro concerns have already been priced in, and, crude too doesn't warrant a price above USD 90 per barrel. In fact, she says, the market is at an attractive entry level considering a 12-month horizon. Being cautious on rate sensitives, Munshi believes that the space is likely to underperform in the near-term. She also feels that global liquidity is the key upside risk in the near-term. "We expect strong economic data from the US in the next couple of months," she says. Concurring with Munshi