Motilal Oswal
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Motilal Oswal
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January 11, 2019 05:19 PM | Business

Buy Pidilite, Page Industries and sell UBL, says Jai Bala

Market expert, Jai Bala, has a buy call on Pidilite Industries and Page Industries, and sell on United Breweries Limited (UBL).

"Pidilite has formed a double bottom and went to record highs. The company has now pulled back from those highs to perfect Fibonacci retracement of 38.2 percent. So, that is telling us that Pidilite is probably embarking on the next leg of the move post that correction. I am expecting record highs once again past Rs 1,250. It looks like a low risk reward trade at current levels with a stop below Rs 1,070," Bala said.

"Page Industries was my Diwali pick and I am still very bullish on it from a medium term perspective. The chart setup says it hasn't completed and it has got one more pending record highs to come through. So, the chart structure says that what we saw as the recent low is actually a double zigzag under the Eliot Wave model. So I would expect some sort of reversal to come through at current levels. It had a reversal and a volume exhaustion, when recently it made a low at Rs 21,600 and I am expecting this to do at least Rs 26,250 in the short term. So, one can place a stop below Rs 21,600," he said.

"UBL has been struggling around Rs 1,410-1,415 for a couple of times now and it's starting to look like it's going to see some sort of a correction. I don't know if it is going to be to Rs 1,300 or may be a deeper one to Rs 1,150. So, hence a short trade here with a stop above Rs 1420," Bala added.

"In fact, the banking index is slightly more bullish than the Nifty, so I would think soon one of the private sector banks or probably one of the PSU banks will join along with SBI and give more thrust to the banking index. So I am still positive on the market ," he said.

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.
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