Gautam Shah Sees Nifty Reaching 26,800 By Next Diwali Despite Recent Volatility

In a recent interview, Gautam Shah, Founder of Goldilocks Premium Research, shared his perspective on the volatile runup to this festive season. While acknowledging that the last few weeks have been challenging, Shah emphasized that investors should not be overly concerned. The market had enjoyed a strong rally over the past 6 to 8 months, with stocks across various sectors performing exceptionally well. According to Shah, this period of consolidation was necessary, with valuations previously becoming overstretched. He pointed out that although the midcap and smallcap indices have only corrected by 3-4% from their lifetime highs, many stocks across the broader NSE have seen significant internal corrections. Shah expects some short-term weakness, with the market possibly dipping toward the 24,000 level. However, he views this as an opportunity for investors, as the market will offer a favourable risk-reward ratio at that level. With strong domestic money flow, especially through SIP contributions, Shah believes the bull market is intact and this correction is healthy. Looking ahead, Shah expects a rebound in the market within the next month, and for the long term, he predicts a steady upward trend, with a Nifty target of 26,800 for the next year. Shah highlighted capital goods, real estate, and pharma as sectors that delivered strong returns last year and sees metals and IT as potential outperformers between this Diwali and the next. Despite recent market turbulence, Shah remains optimistic about the opportunities for investors in the coming year.