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Goldilocks' Gautam Shah: Autos will continue to be darlings of market; buy any auto names on dip

market | Jan 27, 2021 11:51 AM IST

Goldilocks' Gautam Shah: Autos will continue to be darlings of market; buy any auto names on dip

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The market will stay volatile for the next couple of weeks, said Goldilocks Premium Research’s founder and chief strategist Gautam Shah on Wednesday.

The market will stay volatile for the next couple of weeks, said Goldilocks Premium Research’s founder and chief strategist Gautam Shah on Wednesday.

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“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
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