Long-term investors should wait for better prices to enter: Pros

It was phenomenal day for the market today and bulls were in full swing. The market rallied intraday with Nifty ending the day 107 points up at around 7962 and Sensex was up 328 points at 26,007 largely on account of short covering rally. Meanwhile, FIIs were aggressive buyers and DIIs did not sell much.Stocks from the power and NBFC spaces actively participated in the rally.Market expert, Anand Tandon, says fundamentally things haven’t changed and we are trading at higher-end of valuation, so if liquidity is propelling the market then one must trade with it but longer-terms investors need to book profits and wait for better price to enter the market again.Although the near-term momentum is very positive, one would have to wait and see if it lasts beyond expiry and if it does then stay with the trend, adding that stay with the sectors that are moving in the trend.Parag Thakkar of HDFC Securities too agrees with Tandon and advices caution for long-term investors because good monsoons are already priced-in into the market and good stocks are at a fair price. So one need to wait for correction, since globally China, Europe still are problem areas and if Fed is even a bit hawkish there could be downsides.Meanwhile, Ashwani Gujral of ashwanigujral.com says with the current momentum in the market Nifty is likely to head towards 8100 soon.With regards to Bank Nifty, Gujral says this current 450-point intraday rally may not be witnessed again, especially if today’s rally was a short-covering rally.SP Tulsian, sptulsian.com also maintains his target of 8100 on Nifty Futures for the April series. However, he is cautious on the May series because historically May and October have been dull months for market. The May series could be a bit soft but it is unlikely that Nifty Future would breach 7700 levels, says Tulsian. Going forward, he is positive on the June series but would wait till midway of May series to take a call on that. Stock specific, Gujral is positive on both Idea Cellular and Bharti Airtel and see another 10-15 percent further upside for them. One can buy on declines in these stocks, he adds.Thakkar likes Power Grid from largecaps.While Tulsian advices subscribing to the Thyrocare IPO. He is cautious on Reliance Industries on back of uncertainty of Reliance Jio launch and net debt.While, Tandon thinks there is still more upside for Maruti and believes it is a stock to have in ones portfolio. Although he cautions that the margins for the company in the next quarter may not be at the same level because steel, rubber prices have moved up.Vivek Mavani of Financial Advisor too agrees with other experts that today’s super rally was basically due to short covering, which was further aided by better than expected earnings from Maruti.The current momentum could help Nifty open at 8000 tomorrow, says Mavani but in the next couple of days it could trade around 7800 – so not too much of downside. Expiry on Thursday too will also make a big role, he adds.With reference to earnings from Axis Bank and IDFC Bank, he is more optimistic on the prior.  Vishal Malkan, CMT, www.malkansview.com will be going long on the Nifty tomorrow with a stop of 7960 for a target of 8030. He also recommends buying Reliance Communication with stop loss of Rs 56.50 for target of 61 and Biocon with stop loss of Rs 558 for target of Rs 580.For more on their stock specific views, watch video