Reliance's breakout signals hope for bulls, but Jai Bala has one key Nifty level to watch
Reliance Industries is showing signs of a potential trend reversal, but investors may need to wait for further confirmation before turning decisively bullish on the broader market, according to market analyst Jai Bala of Cashthechaos.com.
Speaking to CNBC-TV18, Bala said Reliance's move above the ₹1,249 level was a welcome development for the bulls, adding that a close above ₹1,275 would be particularly significant. The stock has been one of the key pivots that the market has been waiting for, he said.
However, Bala cautioned that the broader market's recovery was not yet confirmed, with the Nifty facing a crucial resistance level at 23,750.
He said the Nifty's rise from its October 8 low to its October 19 high could either signal a trend reversal or simply represent a corrective rally. A decisive move above 23,750 would strengthen the bullish case and potentially open the door to fresh record highs.
"Stalling at 23,750 and reversing will not be a good sign. We want the Nifty to just bludgeon through the resistance at 23,750," Bala said.
He added that several macroeconomic and domestic indicat...