Shubham Agarwal of Motilal Oswal Securities told CNBC-TV18, "The sectoral view for capital goods remains positive. Capital goods is something that we have been talking about for a very long time last time. We gave a call on Engineers India and Larsen & Toubro. This time we are picking Siemens, because if you look at the movement the early movement that happened from Rs 850 to about Rs 1,500, it was very sharp in nature. Post that for four months, we have seen a consolidation happening in Siemens and now, this consolidation seems very much mature. So, the sectoral view remains positive. The longer-term trend is positive and now this stock is breaking out. So, this adds to more confidence on taking a buy call and I expect a target of Rs 1,650 within a timeframe of two months and a stop loss for the same can be kept at Rs 1,360."
"Ideally Rs 1,490-1,495 would be a very minor resistance, but I do not think it is very important, because after a temporary one or two day consolidation that should also get taken out, given the fact that the longer term trend is positive there," he said.
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