Metal stocks the weakest in midcaps space: Gautam Shah

ET Now spoke to Gautam Shah, CMT and Vice President, Financial Services, JM Financial, on his views on the midcap space.

ET Now: Which sectors do you think are the strongest and weakest in the midcap space?

Gautam Shah: The worst could be over for sugar, at least when you look at the charts. A lot of stocks have made an important base. You have had multiple legs of divergences on a lot of sugar stocks and when we look at the international sugar price chart, it gives you an indication that there could be another 10% to 15% upside which could mean substantial upside for most of the sugar stocks out here over the next few months.

So we would be positive on sugar and recommend a buy on any and every decline.

Metals appear to be the weakest. Whether you look at the large caps or the midcaps, that is a sector which witnessed a breakdown last week and despite the Nifty moving above 5400, I did not see significant moves in the metal index. So this is a space I would recommend and exit at these levels and maybe the PSU banking space, which is the best trading idea for the time being.