Nifty likely to cross 18,100 decisively in near-term: Gautam Shah
Gautam Shah, Founder and Chief Strategist at Goldilocks Premium Research, on Tuesday, in an interview with CNBC-TV18, said that the Indian markets' relative outperformance is expected to continue and 18,600 is a possibility too.
In the past month, India's benchmark index, the Nifty50, has rallied over seven percent, thus beating global peers. During the same period, the Korean Kospi and Japan's Nikkei are up five percent. Moreover, China's CShanghai Composite is down around 1.5 percent and this seems to be playing well for India as foreign investment inflows have increased.
Gautam Shah, Founder and Chief Strategist at Goldilocks Premium Research, on Tuesday, in an interview with CNBC-TV18, said that the relative outperformance is expected to continue with Nifty50, which has earlier also breached 18,100 but then corrected, now poised to do so decisively.
“In the last year we have had the Nifty correct from 18,100 many times and therefore, every market participant will be watching that number. I just feel that there is enough evidence on the table to suggest that this time we will clear that and once we clear that there is no stopping till about 18,600,” he said while speaking to CNBC-TV18.
He further said the market breadth data does not indicate that it is in overbought territory.
“The midcaps and smallcaps have not participated in the last two weeks. It has been the large-caps led by what has happened in world equities,” said Shah.
Also Read: Sensex rises over 350 pts and Nifty50 tests 18,100 lifted by HDFC twins, Reliance and Infosys
When it comes to stocks, the research firm is positive on banks, autos, and capital goods. It believes that SBI, Canara Bank, and Bank of Baroda have the potential for further gains. The firm also prefers the entire public sector undertaking (PSU) basket and expects that the PSU basket can see a 15-20 percent upside led by Coal India.
While talking about auto space, Shah said, “You have to work hard for returns because Hero, Bajaj, and Tata Motors have not done well, whereas Eicher Motors, Maruti, and M&M have done beautifully, even Ashok Leyland. I think there is a lot more potential for this set of stocks along with Tata Motors, which is my favourite pick among the underperformers of the recent past.”
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