Jai Bala, CMT of cashthechaos.com on Tuesday said that the index has possibly commenced a correction towards 13,100.
“I think the market has started a short term correction. The possibility that the market heading towards 13,100 on the Nifty is a reasonable case. As long as the index stays below 14,440-14,520, I think this is a possibility. However, if the markets manage to take out 14,520 on the Nifty, I think it will weaken the case for a correction and we could have one more new high,” he said in an interview with CNBC-TV18.
On Reliance Industries Ltd (RIL), Bala said that Rs 2,097 on the upside and Rs 1,835 on the lower side are critical levels.
“The market has done quite well without Reliance over the last few months. So this makes a good bullish case for the markets. If the markets were to rotate into Reliance at this point of time, it can stem the fall I am anticipating. There are two borders for the stock; Rs 2,097 on the higher side and Rs 1,835 on the lower side. If Rs 2,097 gets taken out, I think that is a good pace for the bulls. But if it falters around current levels and makes new low below Rs 1,835, I think that will have a bigger impact over the medium term,” he said.
Bala advised shorting Maruti Suzuki and Sun TV for target price of Rs 7,100 and Rs 430 respectively.
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(Edited by : Ajay Vaishnav)
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