Don't try to short a bull market; Nifty likely at 22,400 in 12-18 months: Gautam Shah
Gautam Shah, Founder & Chief Strategist, Goldilocks Premium Research, says “indicator wise, the daily RSI on the Nifty made a new 52-week high just a month back. There are no signs of topping out. I know this market will keep scaring you from time to time, but it will keep coming back.
My working target for Nifty has been 20,400. Eventually, if you take a 12-18 month view, 22,400 is coming.” Shah also says: “In a raging bull market, you want to be in those pockets which are moving well with the Nifty, which I do not see autos or FMCG doing.”Banks and metals are two pockets which look interesting to you. Is there a case for IT bottoming out?I think it is.
In absolute terms, you might not get that indication that it is going to bottom out and there are definitely some headwinds. But if you look at the IT index divided by the Nifty, it is at a 10-year support. After Infosys results, a lot of the negatives are already in the price.
People are factoring in the headwinds that are coming out of the US and the global markets in general and any which way, we live in a very dynamic world. But chartically, it can only get better from here. But it is not going to be a holistic rally.
It is not going to be a rally across the board. So within the top six, the ones that we like are TCS and Tech Mahindra. And I believe these two stocks will stand out and outperform the IT index.
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