Short L&T, says Gopi Suvanam

Gopi Suvanam, Founder of InvestWorks told CNBC-TV18, "I expect capital goods not to do so well especially on the midcap side. So Thermax particularly I would not go long and if somebody has a position I would start looking at unwinding that position doing stop loss kind of trade.”

He further added, “Larsen and Toubro (L&T) is one stock where I think there is scope for further sell-off. It is one of the stocks that has outperformed most of the capital goods space itself. So L&T I would go short. It may not materialize in January series, but it may eventually materialize in February series. So L&T is one stock where I am looking at short positions."

“Other than that may be there are individual companies which are doing good in terms of growth and which look attractive for example Voltas in the capital goods space. Investors can selectively build some positions in the stock, but other than that in general I am very bearish on this segment," Suvanam said.