Nifty needs to get past 14880 level to see range breakout, says Gautam Shah; lists out four best sectors

Nifty has to get past the 14,880 level to see a range breakout and if that happens, the momentum is only going to get better for a move towards 15,500, said Gautam Shah, Founder and Chief Strategist at Goldilocks Premium Research.

“14,880 now becomes a very obvious level because the market has corrected from it a few times in the last ten days. A breakout is coming and if index does get pass 14,880, the momentum is only going to get better for a move towards 15,500,” Shah said in an interview with CNBC-TV18.

Shah continues to work with bullish mindset.

“There is a lot more upside. The broader markets are looking extremely strong and the participation is getting better and better,” he stated.

He believes in the last one month, the market has gone through a well-behaved correction.

“In the last seven-eight sessions, it has been all about COVID-19 versus the earnings expectations, the liquidity aspect and the fact that global markets have been very strong,” he said.

In terms of metals, he said, “Six months back I spoke about metals being the Dark Horse and at that point of time, the fundamentals were just picking up on the ground. Post that you have seen this phenomenal rally across the board, momentum is great, it can continue for some more time but in terms of risk reward I don’t see an opportunity at these levels. We are recommending our subscribers to book some profits and move to some of the other sectors.”

He sees immense opportunities in IT and pharmaceuticals sectors. “IT and pharma are going to be the flavours for the next couple of months,” he said.

There is an opportunity in auto and some of the stocks can move up 5-12 percent in the near term, he shared.

For Shah, IT, pharma, banks and chemicals are the four best picks in today’s markets.