Momentum is characterised by short bursts, rather than sustained activity and investors should dive in and take advantage of these brief bursts in order to capitalise on opportunities, according to CK Narayan, founder of NeoTrader & Growth Avenues.
The current market exhibits significant momentum, he said in an interview with NDTV Profit.
These are Narayan's top picks for auto and railways stocks:
Auto Stocks
Two-wheeler stocks such as Bajaj Auto Ltd., Hero MotoCorp Ltd., Eicher Motors Ltd., and TVS Motor Co. are currently experiencing a remarkable upswing. The attained stock prices are not alarming investors, and the momentum in these stocks is expected to endure.
There is considerable anticipation surrounding Tata Motors Ltd., particularly from the commercial vehicle standpoint, according to Narayan. If one were to focus on the commercial vehicle sector, the Tata Group company would be a promising bet, he said.
"I would focus more on the two-wheeler stocks than the four-wheelers."
Railways Stocks
The surge in share prices of Railtel Corp. of India is due to the technolog mix and widespread takers, according to Narayan.
While wagon manufacturers experienced a significant upward movement, there seems to be a desire for a breather in their momentum.
The remaining railway stocks have also been exhibiting a more gradual upward trend. Narayan suggests the strategy of buying at dips for wagon manufacturers.
There appears to be ample potential for further growth in other railway stocks, Narayan said. The railway sector is currently in a sweet spot, benefiting from a tremendous tailwind for more than a year, he said.
This favourable trend shows no signs of dissipating any time soon, Narayan said.
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