Stay away from IT, metals in the near term: Gautam Shah, Goldilocks

Benchmark equity indices started trading on the monthly F&O expiry session in the green but soon slipped into trade with losses. While the Sensex was hovering around 59,270, the Nifty was down 0.24%, giving up 17,700 mark. Gautam Shah of Goldilocks Premium Research spoke to Money9 on the best way to approach the current volatile market. "While India continues to be one of the better performers in global markets, the short term charts look overbought. So, we need to get into a consolidation phase maybe even a correction of 3-5% and post that we could see the next leg up in markets. I see no signs of topping out from a bigger picture perspective but near term there could be pressure. We have turned a little cautious and are being very stock and sector specific at these levels as it is not the index game anymore", he said. In terms of select sectors and stocks , he believes investors must stay away from IT and metals but he believes autos could be the next performers,. "I have 11,000 as the next target for Nifty auto and once that gets confirmed the index could move to lifetime highs. However, one needs to be selective and go for Tata Motors, Bajaj Auto, M&M have better set ups. In pharma, we are positive on Sun Pharma , can even hope to see four figures on Sun Pharma apart from that Cipla is my other best bet", he added.