Don’t focus on typical top 50-100 names, look elsewhere now: Gautam Shah

economictimes.indiatimes.com:

Gautam Shah, Founder & Chief Strategist, Goldilocks Premium Research, says “it does seem that over the next many weeks, maybe even many months, the Nifty just broadly stays in a range and digests the news flow around elections and oil and global markets whereas stocks and sectors continue to do well. There will be pockets that will stand out like auto ancillary, sugar, infrastructure, power. There will be pockets that will stand out like unlock trade, hotel stocks. So concentrate on these pockets and not on the typical usual top 50-100 names.”
The entire engine or the propeller of this market are banks. But banks have not participated. Now, the technical theory is that the weakest sector would always lead the decline. Banking, which was supposed to be the strongest outperforming sector for 2020, has turned out to be the weakest sector. Could it be that the banks surprisingly could actually lead the decline because technically, that is a setup?
The writing is on the wall, banks will lead the market down.

They are a big heavyweight. HDFC Bank, despite all that is spoken about fundamentally, has been one of the biggest underperformers not just for the last five months but for the last two years. As I just said earlier, the HDFC Bank chart divided by Nifty has seen a breakdown last week and this underperformance is not going to end anytime soon.

In fact, Bank Nifty was probably one of the few sectoral indices in the market to not make a new lifetime high while the Nifty went to 20200 and the midcaps did well.

While many other sectors in the market did well, that to me was a big red flag. And now it is coming back close to the lower end of the range which is around 44,000. If that were to break, 2,000-2,500 points could get