Avoid railways but definitely buy defence stocks: Gautam Shah

economictimes.indiatimes.com:

«So, I think the recent breakout was genuine and I do believe that the banks can lead the market higher from current levels. In fact, our working target on the Bank Nifty is about 47,500 to 48,000,» says Gautam Shah, Goldilocks Premium.What happens to banks now? In the pure play banking space can HDFC Bank now do the magic considering it is a behemoth and a combined entity soon or do you think there is any other banking stock which is going to show leadership?See, a month back, there was this concern that the Nifty was going up and banks were not participating. Remember that six-week period wherein the Bank Nifty was absolutely flat and thereafter, once that 44,000 number got taken out and the way some of these top banks including HDFC Bank which just rebounded from the 200-day exponential moving average, it told you that it was just a resting phase before the next move up.

So, I think the recent breakout was genuine and I do believe that the banks can lead the market higher from current levels. In fact, our working target on the Bank Nifty is about 47,500 to 48,000. There is a bit of a bump around that 45,500 number.

Once that gets cleared, I think there is no looking back. And because it is covering up for three months of underperformance, the scope is huge. So, I think we actually love SBI.

We like the way ICICI Bank is placed at this point and HDFC Bank I think pretty much is a no-brainer. It will take time. It will not give you momentum but definitely gives stability to your portfolio.Financials itself, do you have a preference over PSU versus private?See, of late, I think we believe that the PSU theme is huge.