Stay away from headline indices for now: Gautam Shah

Benchmark indices were trading lower in early trade after opening flat with Nifty the slipping below 15,650. All the sectoral indices slipped into the red along with broader markets. BSE midcap and smallcap indices were down 0.5% each. Gautam Shah of Goldilocks Premium Research spoke to Money9 on how should investors and traders approach this market.

On the range bound trade in markets he said, “The jury is out on whether this is consolidation or distribution but I’m still positive going forward. The market has undergone a deep correction beneath the surface. The last few weeks global markets have also been volatile and week. India in comparison has still been steady. We still outperform the rest of the world”

He also said that a break below 15,620 on a closing basis would lead to a 3-4% correction in the near term. He still believes it is a buying on dips market. He said that the problem is leadership. Eight of the top ten stocks on the Nifty are languishing and because there no leadership markets are unable to snap out of the range.

“The opportunities are likely to be in the broader markets despite all the noise. One has to be stock and theme specific amid capital goods, power, fertilizer, real estate etc.

On the fall in Zomato continuing from yesterday, he said, “The IPO led to frenzy. Zomato is a big story for extreme long term but one should not buy at these levels. there is a room for more correction and there are much better opportunities which exist.”