Morgan Stanley equity strategist Michael Wilson said Tuesday that he doesn't want to see a dramatic rebound from stocks on Wednesday, saying the market needs to become less volatile.

"That's a classic bear market rally-type action. That's the kind of stuff I don't want to see," Wilson said on CNBC's "Fast Money." "I'd rather see us stabilize, find a level ... I would like to see volatility come down as opposed to this whipsaw, up-a-thousand, down-a-thousand. That's not healthy."

Stocks fell sharply on Tuesday, with the Dow Jones Industrial Average dropping more than 700 points, or 2.94%, just a day after posting its biggest points gain in history. The S&P 500 and the Nasdaq Composite also fell nearly 3% after climbing on Monday.

The wild start to the week follows last week's dramatic sell-off, which saw the Cboe Volatility Index, often called Wall Street's "Fear Gauge," hit its highest level in two years.

Wilson, who was saying the market was overdue for a correction long before the recent pullback amid the coronavirus breakout, said some growth stocks are still overvalued.

"I think the biggest risk in the market is still in these high-multiple growth stocks that are over-owned and over-loved because they are not pricing in any kind of recession risk," Wilson said. "That's not our call yet, just to be clear we're not saying there's a definite recession, but the earnings are going to have to come down for all of these companies."

Wilson said that his team had added Mastercard to its model portfolio this week and that investors should take a closer look at downtrodden energy and financial stocks.