Metals to continue to perform, avoid auto and pharma stocks: Mazhar Mohammad

Sensex index jumped 0.4% to hit an all-time high of 56,188 in early trade on Wednesday, while Nifty also hovering around record highs. The BSE mid-cap and small-cap indices were trading higher by 0.5-1%. Mazhar Mohammad of Chartview India spoke to Money9 on the best strategies investors can adopt.

“Markets may remain sideways for some time, but many stocks have already corrected by 20%. Many sectors are struggling as well which is not great for the overall trading aspect. Traders should have a cautious approach in markets even if we see life-time highs today and have a very stock specific approach”

On specific sectors where one should trade, he believes the metals will continue to shine but autos will be laggards.

“Metals, we must remember have given a breakout after 12 long years. So despite the run up many stocks will continue to perform like Tata Steel. On the Nifty bank also, now we see participation coming in. Traders should find opportunities in the banking space. The sectors to completely avoid right now would be auto and pharma to an extent based on the technical parameters”, he said

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