Avoid capital goods basket: Shrikant Chouhan

Shrikant Chouhan, Senior Vice President Technical Research, Kotak Securities in an interview with ET Now talks about capital goods stocks.

What about capital goods stocks?

All these midcap stocks like Thermax or Cummins, are showing a lot of strength, even TIL which is currently quoting at 700. So these stocks are showing lot of strength but stocks like Punj Lloyd, JP Associates, Nagarjuna Construction, IVRCL, are not at all participating, they are underperforming.

So we are just avoiding this basket. Specifically if there is any conviction or as we are expecting the market to trade well in next 2-3 months, we have to look for these stocks because there is low liquidity but the volumes are greater. They are above their breakout levels. We can expect very good up move.