JM Financial’s Gautam Shah Sees Nifty Going Through Correction, Suggests Sectoral Bets
“All other segments can go through further correction, if at all the Nifty sees some pull back,” JM Financial’s Gautam Shah said.
Gautam Shah, associate director and technical analyst at JM Financial Services expects Indian equities to pullback after their run to record highs. “The market is ignoring the negatives,” he told BloombergQuint in an interview.
“This could lead to it going through a patch of correction in the coming four to six weeks.”
Shah is long-term bullish three sectors: Oil and gas, banks and capital goods. “All other segments can go through further correction if the Nifty pulls back.”
Shah expects Reliance Industries Ltd. and ONGC Ltd. perform well over the next three to six months. The upside could be more than 15-20 percent for some of the oil-marketing firms, he said.
While I am still kicked about the PSU segment in banking space, some of the private names are a little overbought and do not warrant a buy at these levels.Gautam Shah, Associate Director and Technical Analyst, JM Financial Services
Other sectors mainly the information technology and fast-moving consumer group space could see a downside in the near-term, he said. Both the sectors could witness “possible shorting opportunities”.
Other Highlights:
- Difficult to see market rally past 12,000 in short-term
- India cannot continue to outperform at a time when other markets are seeing a downturn
- Cannot say worst is over in the auto sector
- Stocks which do not do badly in the difficult times tend to become the best performers
- IT space headed for a big decline
- FMCG to see difficulty in rallying
- Midcap index can show gains of over 20 percent till December
- Small and mid-caps to perform better than large caps till December