Speaking to CNBC-TV18 about the market technicals, Jai Bala of cashthechaos.com said that the Nifty Bank will break the March lows before the Nifty breaks down.
“In yesterday’s price action, the Indian market clocked a very important message. By overlapping at 9,038, the market is telling us that what we saw from 7,511 to 9,889 was just a correction. So, there are two possibilities here - either the market gets into a very choppy long lasting volatile move or the market breaking the 7,500 low that it made in March in a quicker fashion. However, the banking index will first break before the Nifty breaks,” he said.
On banks, Bala said that all bank stocks look weak. He further added that IndusInd Bank is the best short trade in the banking space. “If it goes below Rs 410, my opinion is that it is going below Rs 240,” he said. He expects Axis Bank to go below its March low.