Jai Bala of Cashthechaos.com is of the view that the market would touch at least 10,300 once before the September expiry.

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"I expected the market to pull back a little bit higher, somewhere close to 11,150-11,300. But the market is doing what it usually has been doing since June, that is fall short of resistance and then turn lower from there. So, my expectation is that before the September expiry, the market will touch at least 10,300 once. So, it still is a 'sell-on-rise' market. There is a very small possibility that it might exceed the 11,141 high it made a few days back. However, I do not think that is going to happen. Even if that happens, do not turn bullish on the market, it is still a 'sell-on-rise' market," he observed.

Speaking on Reliance Industries, Jai Bala said: "Reliance has topped out in a long term trend at about Rs 1,500 plus in July. From then on, it is going in a corrective mode. I turned bullish on Reliance back in 2015 when it was oscillating between Rs 800 and Rs 900 pre-split, and I had said that no fund manager would be buying it until it crosses Rs 1700 and that is exactly what happened. Barring LIC, which had 3 percent, none of the fund managers had it."

He further clarified his observation on Reliance. "The reason why I am saying it topped out at around Rs 1,500 level is because it came out of a long term triangle. Triangles are usually the penultimate leg of the move. So, the breakout that happened in 2015-16 was the last leg of a medium term move. So, it is not going to go above the highs it registered in 2019 for quite some time. I expect it to touch somewhere close to Rs 1,000 in the short term and let us see how it pans out beyond that. I am quite bearish on the market and so the short term target would be about Rs 1,015 which is the 2018 low it registered, then probably a pullback post that and then a further decline."

According to Jai Bala, a rally is long overdue for Tata Motors. "I would not be surprised if it rallies somewhere close to Rs 135-139 from hereon. However it is just a relief rally and post that the selling will resume. So, there is a trading rally that is going on but on the long side do not expose yourself too much, reduce your allocation on the long side," he said.

"In some of the consumer names like HUL and Asian Paints, they may still have one more leg of upmove, but Titan is in a slightly different place. Titan has topped out and it is trending lower. The medium trend has actually turned lower for Titan. So, I wouldn't be surprised if I see Titan around Rs 800 say from a 3-6 months timeframe. However there is still a little bit of juice left in some of the consumer names like HUL and Asian Paints but if you are not already long do not get long here," he added.

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First Published:Sept 5, 2019 7:57 PM IST