Be cautious, 8000 on Nifty may not sustain; like L&T: Pros

It was a strong start to the week as the Sensex rose more than 250 points while Nifty reclaimed 8050 levels intraday. However, by end of the day market saw only a marginal uptick with Nifty closing around 8013 and Sensex ending the session at 26586. The Bank Nifty traded in the red with key stocks like Kotak Mahindra Bank,Bank of Baroda and SBI trading down.However, Sudarshan Sukhani of s2anlytics.com clearly believes it is a sell on rallies market and although intra day trades will keep coming, the broad thrust of the market is downwards. So he recommends shorting ideas like India Cement, Bank of India for tomorrow.Independent market expert, Ambareesh Baliga too is cautious on the market and says it is unlikely that 8000 on the Nifty may hold. According to him the uptick seen in the market today could be a dead cat bounce. Nifty would break the 8000 level to settle around 7700 and in case it goes to 7500 levels, it is time to buy, he adds.However, one can look at nibbling into the market, say upto 10 percent of your investments and look at stocks like Larsen and Toubro, BHEL, KEC International, says Baliga.Mayuresh Joshi of Angel Broking thinks it is better to be light in the market than being aggressive. According to him it is difficult to take a structural call at current levels, but the house continues to like Larsen & Toubro, MBL Infra, Power Grid.

However, market expert Nandan chakraborty of Axis Capital advised buying the market from now over the next 6 months with an eye on the back of economic recovery. According to him the poor earnings growth has been discounted in the market and growth will pick up from Q1CY16.Commenting on the Cairn India-Vedanta deal, Baliga does not recommend entering into Cairn because whatever positives were there from the announcement are already in the price and there is no  further trigger for it. There is no long-term positive for the stock, he says. However, Joshi thinks it’s a win-win situation for both shareholders.  Talking about aviation sector stocks, Baliga is not so upbeat on Jet Airways etc because despite low oil prices and high demand if the company could not show decent profits then there is no point in investing in the sector as such.Although Indigo is an outflier there is a question mark on their profits since listed players are not showing any profits, adds Baliga.Joshi is also upbeat on Idea Cellular but would wait for levels of around Rs 150 to invest in it because the valuations currently look a bit stretched. He also likes the auto ancillary space like Eicher Motors, where there are signs of improvement in the commercial vehicle segment. From the tyre space, he like JK Tyre and Dishman Pharma from the pharma space and believes the stock could see earnings upgrade by second half.Joshi also likes the top tier IT companies like Infosys, TCS, HCL Tech which are likely to perform better for one-two years more and does not think visa issues to have significant impact on their financials.However, according to Sukhani, midcap IT stocks are not opportunities for now although they are likely to outperform later on.Meanwhile, global markets were weak today with China closing with a loss of 2 percent; Hong Kong was down 400-points. European markets too were under pressure, Greece was down almost 7% after bailout talks break down over the weekend. All eyes are now on two day FOMC policy that begins tomorrow.