2015 to be a year of wealth preservation: Pros

Even though the Nifty just about managed to hold on to the 8200 mark - the 200 day moving average, the overall picture for the market is negative and sub-8000 levels are likely going forward, says Rajat Bose of rajatbose.comHowever there is possibility of a minor pullback tomorrow close to 8300 levels because technically, whenever 200 day moving averages are tested for the first time in a bull market, there is always a pullback likely, says Bose.Bose says, it is advisable to partly book your short sells and avoid fresh short selling close to 8200 levels.

The bears today continued to keep a tight hold on the market. The Sensex closed down 260.95 points or 0.9 percent at 27176.99 and the Nifty ended at 8213.80, down 91.45 points or 1 percent at 8213.80.According to market expert Ambareesh Baliga for the last couple of days one witnessed a price correction and so, going forward it could be more of time wise correction and that would be an appropriate time to start buying slowly but right now one must avoid catching the falling knife. “2014 was a year where one made money, 2015 would be the year of wealth preservation”, believes Baliga.According to Mayuresh Joshi of Angel Broking, it is extremely difficult to take a long-term call at these levels and so it is better to stay in cash and wait for the market to stablise. The house has been recommending staying in cash for some time now. The other strategy could be to invest in a staggered manner during corrections like today by just chipping in 10-15 percent of the intended corpus.The market, according to Joshi could see some stability in case there are triggers like the goods and services tax (GST) bill being passed because otherwise the earnings so far have been weaker than expected and sentiments is really sour. According to Bose, on a day when you have 8 winners and 42 losers out of 50-Nifty stocks then there is huge Call Writing at 8200-8300 but not much open interest added in Puts. So, he recommends against fresh short selling around 8200 levels. Talking stock/sector specific, Baliga says although he has a long list of buys, one cannot buy them at the current levels. PSU banks and telecom stocks are undoubtedly on the sell list. From the telecom space, he expects Bharti Airtel numbers to disappoint tomorrow. For Joshi too one has to be very careful while picking midcap pharma stocks, says Joshi because if earnings disappoint then they are likely to fall hard.Basically, the valuations in the middcap pharma space have peaked out and have already captured most of the earnings, says Joshi.However, he expects private banks to do well over the next few quarters, a few housing finance companies, few auto stocks and few midcaps.