Only top 50 stocks positive, rest of the market is correcting: Gautam Shah

Benchmark indices erased early gains and trading lower with Nifty below 16250. The Sensex was down 198.38 points or 0.36% at 54356.28, and the Nifty was down 52.10 points or 0.32% at 16228. About 417 shares have advanced, 2288 shares declined, and 74 shares are unchanged. Gautam Shah of Goldilocks Premium Research spoke to Money9 on how can investors find value in a market where valuations are stretched.

“We were always positive on the markets, India VIX is relaxed and on Nifty it looks all good. Markets however is having a split personality where the top fifty stocks are positive but the rest of the market is correcting especially in the broader market space is in a spot of bother, however, I am not overtly concerned about this. This is typical market cap rotation in a bull market scenario”, he said.

He expects the Nifty to claim 16,600 on the Nifty soon. He also said that there is a decisive new trend emerging of the movement away from mid and small caps back to large caps.

On the preferred sectors, he said, capital goods, FMCG , real estate and IT are his top focus areas, while he is neutral on metals, pharma and consumer durables

On the earnings front especially on Zomato, he said that there many other stocks to play the unlock theme. It is over-owned, and may not give you great returns in the near term.

On Vodafone, he said, “It is not an option to buy at Rs 7, as the stock has always had a bad chart. There are indications that there is a clear problem. Vodafone’s loss is Bharti Airtel’s gain.”

On the best ways to deal with market at record highs yet sharp fall seen in broader markets, he believes one must stick to quality, not go for overt intra-day trading, but stay in the game and participate on the way up.