Gautam Shah not bullish on Nifty, bets on IT, pharma, autos
Gautam Shah advises shifting focus from Nifty and Bank Nifty towards specific themes that have great potential over the next 6-8 months.
Gautam Shah, Founder and Chief Strategist at Goldilocks Premium Research is not bullish on the Nifty 50 or the Bank Nifty as they seem to be in a phase of indecision for the first time in many years.
Shah sees 19,850 as a crucial resistance level for the Nifty, which if breached on a closing basis can lead to some uptick. However, he does not see the market sustaining easily at a higher level.
Instead, he advises focusing on promising themes, particularly information technology (IT), pharmaceuticals, automobiles and public sector firms. He believes these sectors will be the 'star performers' over the next six months.
Within autos, Shah highlighted the potential for stocks such as Bajaj Auto, Maruti Suzuki, and the 'dark horse' Hero Motocorp, which has just stepped out of 12-15 months of underperformance.
Shah also shared insights on the commodity market, predicting solid support for Nymex crude at $72-75 per barrel, while also foreseeing a breakout in gold and silver.
He anticipates gold reaching $2300-2400 per ounce and silver climbing to $28-29 per ounce, advising investors to consider topping up their portfolio with precious metals.
“I wouldn’t be surprised if gold takes out $2070 per ounce and moves towards $2300-2400 per ounce and silver eventually in international terms goes towards $28-29 per ounce. That is where we are quite positive,” he said.
For more, watch the accompanying video
(Edited by : Shweta Mungre)
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