Gautam Shah, associate director and technical analyst at JM Financial, expects Indian market to do much better in 2019 compared to last year.

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In an interview with CNBC-TV18, Shah said that there were too many factors against equities in the month of December and despite that Indian market outperformed by a greater extent.

“India was probably one of the best performing markets in the world and this can carry on in days and weeks ahead. So for now the Nifty is locked in the range of 10,650 to 10,950 given the fact that the banks are holding out, the midcap index has held out well, global volatility index has seen large cool off in the recent past,” Shah said.

Shah is optimistic on Indian markets and expects gains going ahead. “I think all of these factors suggest that the market is laying foundation to a large 400-500 point Nifty move and we would be a little optimistic here, anticipating a breakout above 10,950 and once that breakout happens it could set the ball rolling for a level of about 11,300 and eventually towards lifetime highs.”

“Talking point has been the outperformance that India has exhibited in the last few weeks and the three ‘c’, crude, currency and cash, with these 3 factors having stablished well for Indian equities, I think time has come for Indian market to start doing much better than what we have seen in the last many months,” he added.

According to Shah, metal index has been an underperformer and it continuously made lower tops and lower bottoms.

“Barring banks, capital goods, FMCG possibly even the auto space are segments in the market that will do quite well going forward. Therefore, I would like to stay away from the underperformers for now,” Shah added.

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First Published:Jan 15, 2019 10:52 AM IST