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Traders should play the current rally with bulls but remain near the door: Jai Bala

Updated : October 31, 2019 06:40 AM IST

Market expert Jai Bala of cashthechaos.com on Wednesday said traders should play the current rally with bulls but remain near the door.

Bala said, "My stance has slightly changed from September. I have been saying that this market needs to be handled like a trader's mentality and not with an investor's mentality, there is no change in that. The market is using all its firepower to make an assault on its all-time high. If you look at the intraday charts from September 23 high to today's high, the market is slowly losing momentum. More importantly, if you looked at the number of stocks hitting 52-week highs, the number of stocks hitting 52-week lows, right from the last time I spoke on October 18, the market has been clocking about 4 times or 2 times the number of stocks that are hitting 52-week lows and 52-week highs. So, the skew is more towards the number of stocks hitting 52-week lows. So, even though the market is going up, the internals are deteriorating for the market and it is losing momentum."

On Infosys, he said, "The company has hit a very important level today at Rs 670 and it is turning back, it has pulled back slowly to Rs 660. I think this is the minimum level for this pullback for the stock. I think it is going to try and attempt to break the Rs 615 low it made a few days ago and if that goes the next level comes somewhere around Rs 580-530. I think it is going much lower. I had posted about an ending diagonal for the stock right before the scrip came out with its quarterly results and this was expected. Just the fact that some corporate governance issue came is just incidental."

Speaking about TCS he said, "TCS is looking pretty interesting. It has got a little more upside to work with. Probably along with HCL Tech, it will clock a fresh record high but I do not think it will stick. Be very careful, at least take partial profits with TCS if you want to continue to hold the stock. Rs 2,300-2,350 is the level where I will be cautious in TCS."

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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