Don’t indulge in bottom fishing in tech stocks: Goldilocks’ Gautam Shah

Do not indulge in bottom fishing in technology stocks, said Gautam Shah, founder and chief strategist at Goldilocks Premium Research, on Tuesday, adding that banks, real estate, capital goods, metals and autos are expected to do well.

In an interview to CNBC-TV18, Shah said, “I don’t want to be aggressively bearish or bullish in the current environment. I want to stick to pockets that exhibit outperformance, so banks, real estate, capital goods, metals and autos – these are the 5 pockets that I like and they could do well irrespective of the Nifty behaviour.”

“I do not think one should be indulging in bottom fishing in IT. There is room for more weakness. If the market weakens further then IT could be the punching bag,” he said.

However, said Shah, not to chase anything that has moved up in the last year. He said, “At Goldilocks, we are looking to cover stocks, right now, which haven’t done well,” he said.

Talking about autos, he said, “Autos cannot do well on a standalone basis, they need the support of the market. So you want the Nifty to stabilise at some point in time and if that happens then auto and metals could be one of the better bets for the next 3 months.”

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