Gautam Shah, founder and chief strategist at Goldilocks Premium Research, on Tuesday, said it is bullish on real estate and public sector undertakings (PSUs).

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In an interview with CNBC-TV18, Shah said the market will remain range-bound but there are a lot of themes in the markets that will continue to do well.

He said, "The real estate is still looking very strong and over the next 6-12 months, the real estate index can go up another 25-30-40 percent from here. So we are recommending our subscribers, at Goldilocks, to buy real estate on every dip. We have been bullish for the last three-three-and-a-half months and we maintain that view."

Also Read: GDP contribution from real estate likely to be in double-digits in next 3-5 years: Kotak Mahindra AMC

Further, Shah said, "The other dark horse theme, which is playing out well is the public sector undertaking (PSU) theme and it will give out supernormal returns over the next 3-6-12 months."

However, Shah said, the preference is not the banks, "We are more positive on the other set of stocks; the entire PSU index, except banks, and that’s where the maximum return has been."

Also Read: First time home buyers back and participating in real estate rebound: Prestige Group

"There are a lot of headwinds for the PSU banking index or stocks in general. So apart from State Bank of India (SBI), nothing is majorly interesting, but the rest of the stocks have a lot more potential from here," Shah said.

For the entire interview, watch the video