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Find out Jai Bala's quick take on some handpicked stocks

Updated : February 12, 2020 05:15 PM IST

In an interview with CNBC-TV18, stock market guru Jai Bala of cashthechaos.com spoke on what is moving the markets.

“Given the fact that the US S&P is looking like it is heading for 3,500, I would give the bullish scenario a slight edge over the bearish scenario. Unless some heavyweights like State Bank of India or something from the private banks breaks down, I think the bulls have a slight edge over the bears,” he added.

On Hindustan Unilever, he said, “The FMCG space is rightly poised for making new highs and it is not a surprise that HUL has reached where it is. But the trend is getting quite mature, probably it can push to somewhere close to Rs 2,300-2,400, maybe even Rs 2,500, but be very careful. This is not a stage to incrementally invest money in HUL. There are other FMCG stocks like Dabur which has more upside. You can buy that on a pullback, but not HUL.”

Bala also explained his short call on Bata. “From weekly charts and a three-year timeframe, Bata is completing a major high just below the Rs 1,900 mark. If you look at the charts, it has got a pronounced negative diversion too. From the record highs it clocked three or four sessions ago, it has clocked a bearish outside day. So, that is telling that there is some pressure there. You must have hard stops at Rs 1,900 and that is a very small price to pay because this has the potential to drop to Rs 1,650 in the short term, maybe even Rs 1,100 if this is a major top,” he observed.
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