Focus should be on capital goods, auto, industrials and metal stocks: Arindam Ghosh, BlackRidge Capital Advisors

In a chat with ET Now, Arindam Ghosh, CEO, BlackRidge Capital Advisors, shares his views on the current outlook of the market. Excerpts:

ET Now: Should one use current strength and cyclical to their advantage to cash out and revisit defensives?

Arindam Ghosh: One needs to be cautious and not get carried away by the kind of encumbrance that we are starting to witness.

The preference should be on some of these cyclicals; with the long term horizon, one should start paredown exposure (in case of defensives) without getting out of it.

There would be an opportunity on price correction and price moderation as far as these frontline defensives are concerned. It would throw up some opportunities as we go into the next year. However, in the run up from medium term perspective, it is time to build long positions around quality cyclicals.

Hence, capital goods, auto, some of the industrials, metals-these are the stocks where one should start focussing a little more.