Better to take fresh positions post Brexit event, say experts

The market today seemed to be relatively confident heading into the Brexit event with long positions, on back of expectation of remain verdict. The Nifty closed just three points below the 2016-closing high at around 8270 and Sensex ending the day 236-points at 22,0087. Foreign institutional investor (FIIs) flows too were mixed but with a positives bias. P Phani Sekhar, Karvy Stock Broking said if Britain votes to remain in the European Union tomorrow then it would be the best chance for Nifty to break 8300 levels and the next stop could easily be 8600. However, post the Brexit event, the market will focus back on monsoon session, reforms and could hold around 8400 levels expecting positive news and with expectations of better earnings for the first quarter, says Sekhar.According to him, if the news is positive from Britain then 5 percent upside is given and for the very near-term one can look at index calls. Ashwani Gujral, ashwanigujral.com says the market has already rallied into this event from Monday and a lot has got priced in. So, one can look at taking fresh positions post the event. Sudarshan Sukhani, s2analytics.com it is better to be risk averse before the event has played out.Providing some comfort, Dimension Consulting CEO Ajay Srivastava says if the referendum vote proves unfavourable then there are central banks to step in and support the market, so there should not be much worry.He does not expect any significant decline in indices here and in fact expects some institutional buying coming in, if that happens.Srivastava feels pharmaceutical companies can be looked at now as most of the negatives have been priced in. NBFC's, however, look slightly expensive, he says. In the same interview, Prakash Diwan, prakashdiwan.in and SP Tulsian of sptulsian.com also shared their view on stock specific ideas.For the full discussion, watch video