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Markets continued to power ahead on the back of stable global cues and strong buying interest in stocks across sectors. A late spurt helped the
markets today.

Nifty closed 82 points higher at 5,940, while the Sensex shut shop at 19,738 up 208 points.

On being asked whether the market is right for long traders or should one book profits, Rajat Bose of rajatkbose.com said, "No, I would like to hold on to my positions, because Nifty is crossing another resistance level that is between 5,895-5,900. Once this level is crossed, the only resistance before 6,000 would be 5,960 and we will post a new high. So I would rather carry my long positions than get out of them fearing that there could be any kind of a fall. Because today I have seen sustained buying and it’s not just a one-way surge, so this gives me confidence to hold on to my positions."

Manish Sonthalia of Motilal Oswal Securities told CNBC-TV18 that inspite of all the speculation on whether there will be a rate cut and how much, the markets are headed higher in the near-term. He said, "Till a few days back, people were debating whether there is going to be a rate cut or not. Now people are debating whether there is going to be a 25 bps cut or a 50 bps cut. In any case, we think that the markets are headed higher in the immediate short-term, primarily aided by liquidity flows into the country and emerging markets as a whole. You may argue that money is not cheap in the US, but there is plenty of money waiting to come in from the Middle East or China. But liquidity is sure to come in, in case of a Fed rate cut. We think that in the immediate short-term, markets are headed higher."

Manish Sonthalia thinks the best way to go forward is to look at individual businesses. He would be more focused on the large caps. But clearly the sectors that would see greater interest would be infrastructure, financials, primarily on account of the fact that the spread between the Fed funds has widened.

Source: Moneycontrol.com