Investors should be cautious at current levels, feels Gautam Shah, Founder & Chief Strategist of Goldilocks Premium Research.
“We have been working with 13,100-13,200 for this move, we are almost there. I think the markets are slightly over bought at this point of time so one has to be a little careful making fresh commitments at these levels from a shorter term perspective. If at all 13,200 were to get crossed you could see some more near term strength.”
He said, “Going forward the next four week, six weeks, 12 weeks is going to be about stocks and a lot of underperformers are now making a comeback. So instead really looking at the headline indices the bigger opportunity is going to be the midcaps, the smallcaps, underperformers like realty stocks, chemicals stocks and they are the ones that are going to give you super normal returns going forward.”
Shah is bearish on PSU banks and said he will stick to top quality and metals, chemicals, insurance that offer far greater opportunity. He feels the IT and pharma sectors still have some steam left in them.
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