Good time to buy some cement stocks, says Gautam Shah of Goldilocks Research

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India will be a relative out-performer it will continue to stand out, said Gautam Shah, founder & chief strategist, Goldilocks Premium Research, while commenting on the market levels during an interview with CNBC-TV18.

"If you look at the equity market basket, you have rotten trends everywhere. So many markets in the world have made new lows for the year which is obviously not a good place to be in and India pretty much was the apple of the eye of foremost market participants," he said while evaluating whether India's market holds against U.S market's significantly lower lows for the year.

He added that the Indian market is in a "short-term downtrend".

On bank Nifty's outperformance, Gautam said that "bank Nifty is going to see further downside" even though it outperformed for about a couple of months. "I think the bank Nifty needs to retrace the value of the last two months which is going to take some time," he added.

Talking about stocks that are overbought or could fall into negative terrain he said, "We will go deeper but after a pullback." The metal index is looking weak and could see some near-term weakness. Furthermore, capital goods, which had a great rally over the last three months are also looking quite weak, according to the strategist.

"Overall, Reliance Industries, unfortunately, a stock that did not do
well in the good times, is getting hit very badly on the way down and
it just seems that this stock is going to take the market down further," he opined.

He also clarified that he's "bullish on ITC" and the stock will continue to rally.

Lastly, he advised that this market correction is a "good time to buy some cement stocks".

Disclaimer: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.