Zee, Sun and TV18 Broadcast could see an extreme short-term pop up: Market expert Jai Bala

Jai Bala, CMT at cashthechaos.com,  in an interview with CNBC-TV18, said he is looking at a large correction once the markets go below the level of 11,712-11,660.

"If the markets go below that - that is a confirmation that the big correction that I had pointed out last time that is taking hold in the market.”

Talking about Reliance Industries Jai Bala said, “For Reliance medium term supports are under threat, it is an important stock to watch. If it were to consolidate below Rs 2,150 and Rs 2,200 that will be actually a negative. So watch out the supports at about Rs 1,995 for the stock and if it does not take out immediately above Rs 2,150, I think that is a negative price action.”

While giving his views on auto stocks he said, “Bajaj Auto may have relatively more downsides compared to Hero MotoCorp. There maybe not much of a bigger downside, what we saw in Monday that kind of move maybe spread over few days or over 10 days so the downside is there for the stock but it may need not be as big as we saw - the move that we saw on Monday.”

For positional trades Jai Bala recommended, “Something interesting happening in media stocks Zee Entertainment, Sun TV including TV18 Broadcast, they seem to be having some extreme short term popup lined up, so watch out for it.”

“I have one long and one short, long is on Tata Consumer with a stop loss of Rs 455 and target of Rs 600. Second is a short on NMDC with a target price of Rs 73-70 and place a stop above Rs 87.50.”

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