Market expert Jai Bala of cashthechaos.com on Thursday said that 11,700 is critical support for the Nifty.
"As long as the market stays above 11,700-11,695 on the Nifty, I think the rally is still up and you have to presume that the trend is still up. Once 11,700-11,695 is broken, you have to be very careful, definitely have to get out of the positions that you created in September. I think there is a possibility that the market is going to back to the September lows. However, if it is a shallow correction, it needs to defend 11,450. So, if it breaks 11,700m, I would believe there is a much deeper correction that is coming in for the market," Bala said.
On Bharti Airtel, he said, "This is just a corrective rally in the longer term. If you look at the move from 52-week lows, the stock has been moving in an overlapping fashion. When a market starts a new trend, it doesn't overlap. So, my sense of what Bharti Airtel actually is doing is probably it is going somewhere close to Rs 412 in the short term and maybe Rs 440 on a stretch and that is a corrective rally. Once those levels are touched, the longer-term downtrend will resume and I expect Bharti to clock fresh 52-week lows below what it registered in October 2018."
Talking on ICICI Bank, Bala said, "The bank is in a very strong position. Unfortunately, the upsides are starting to look very limited at current levels. However, if you are already long, you want to keep trailing stops below previous weeks low. I think the momentum is losing and the buyers are actually reducing. Wait for a reversal in the stock to take place. Once that happens, you have to liquidate your longs as this looks like a final push for the stock. Once the stock closes below Rs 464-470, I think the reversal would be in place but until that hold the stock."
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