Buy banking, oil & gas and capital goods stocks, says Gautam Shah, CMT, VP Financial Services, JM Financial.
Shah told CNBC-TV18, "Banking has been our favorite for a long time. I think we continue to believe that there is a lot of money to be made in banking stocks even at current levels. I know a lot of market participants argue that we have some of the banking stocks at a lifetime high and we actually buying them even at current levels because I think some of these popular PSU banks stocks or private banks stocks can move up substantially even from current levels, maybe 25% to 30%."
He further added, "If you are positive on the market, you want to be into the sector and stocks that actually lead or are moving with the market, which happens to be banking. So banking remains our favorite and I think one should stay long and should not indulge in profit booking waiting for higher levels. IT space, I don't see too much of an opportunity because I think the major upmove in the IT space is already taken place and from a risk reward perspective, I would say IT, autos and metals would be an ignore whereas capital goods, oil and gas and banking would be a strong buys."
