I wanted to separate categories and products into different section of the page. Not in same loop.
I have already found the solution. I have found how, WC is actually rendering categories before products. They are using the action woocommerce_before_shop_loop to render categories. in the loop. So, if I use the following code, I can choose not to show categories in the loop.
remove_filter( 'woocommerce_product_loop_start', 'woocommerce_maybe_show_product_subcategories' );
