The market will stay volatile for the next couple of weeks, said Goldilocks Premium Research’s founder and chief strategist Gautam Shah on Wednesday.
“It is going to be a volatile market for the next couple of weeks.”
Shah also said the correction in the market is doing more good than bad and he would be a buyer at levels around 14,000.
“The bigger opportunity today would be in autos, in fast-moving consumer goods (FMCG) and insurance. They are the new darlings of the market and FMCG space might help bailout Nifty near support levels.”
A 1,500 point rally on the auto index is likely, Shah said.
“Many sectors are gradually moving back to their February-March highs. The auto index is still 15 percent away from those numbers. So I see a 1,500 point rally on the auto index and this outperformance is going to continue. We have been recommending staying topped up and use every decline as a buying opportunity,” Shah said.
He further said, “If you are a medium-term investor, this is an opportunity, sanity is back on the screen, it is good to see people are little cautious, so for investors, this is a good opportunity.”
On Bank Nifty, Shah said, “It took a lot of buying and a lot of effort to take the Bank Nifty to that level of 32,600. Once the Bank Nifty completes the V-shaped recovery, you could see a corrective phase. That has happened in the last week. I still don’t see immediate signs of strength, the Bank Nifty can go down to a level as low as 30,500 and even 30,000 and below cannot be ruled out. So I don’t see an opportunity there. From an investment perspective, you could still consider investing in Bank Nifty but as a trading opportunity auto, FMCG and insurance are my top bets.”
Metals could see another 20-25 percent upside, Shah said.
“Long-term the structural bull market in metals is intact. We see another 20-25 percent upside if you have a waiting period of about 6-12 months but near-term I don’t see it as an opportunity.”
Watch the video for the full interview
(Edited by : Ajay Vaishnav)
First Published: Jan 27, 2021 11:51 AM IST
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