Jai Bala has some advice for Nifty traders

Market veteran shares his insightful thoughts on the current bull rally

Several days back, the markets were looking extremely volatile in nature, which has been ultimately slipping downwards. And now, what we are witnessing is a sharp turn from the bottom, where the markets have been in the green territory for five consecutive trading sessions. Relaxing crude oil prices along with other commodities, state government elections, and support from domestic investors have helped the markets bounce back. The big question for every investor is whether this bull run is sustainable or not! Market expert Jai Bala of ‘cashthechaos.com’ fame has expressed his views on market volatility as well as on the bullish rebound that we are currently seeing along with some insights on Bank Nifty, in particular.

When asked about the ongoing bull run, he said that it’s more likely to be a relief rally, which might not sustain going ahead in the first quarter of fiscal 2023. He feels that in July or August, we might witness new bottoms and that the current rally is looking good on the charts for a shorter period of time. The state elections have well coincided with the ceasefires and oil price cuts, which have fuelled the markets. However, he sees no sustainability chances in the medium term. Talking about Bank Nifty, he feels that the rally may continue till 37,000, but again, he says that this would be a relief rally.

He also had a few suggestions for investors to play out this bull-run. He was keen on Nifty Pharma index, which he expects would hit a target of 13,800 points (currently at 13,350). He also stressed upon trading in the IT sector, where he finds value in the short-term. Investors might also consider some FMCG exposure for the likes of HUL, he added.

Jai Bala believes that the markets need to go down in the long run and it will be the bull market correction, which will be quite healthy. For Bank Nifty and Nifty, he expects them to bottom out at the levels of 27,000 & 14,000, respectively.