Have patience and hold cash, market going to drop to 18,500 at least: Jai Bala

economictimes.indiatimes.com:

Jai Bala of Cashthechaos.com, says “the banking index has not had a red October for the last 10 years. But it is likely to do it for the first time in October since 2012 is itself a significant factor for the overall market. So be cautious. Holding cash is one of the toughest things to do. And for those who can manage to do that, they will be having a win year after year, half year after every half year. So having patience holding cash is the most important thing. ”


What is the sanctity of breaching this 19,200 mark?
19,200 is not a significant support level but the market is probably bracing itself for a much bigger decline. At the moment, there is a significant breakdown in the Nifty Banking Index and the market leader, the FMCG stocks and the capital goods stocks. So basically, this looks like the start of a much bigger decline. This is just really a preamble.

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Much bigger decline for us. Are we talking about a 500 point correction? Could it be much worse?
The market in my opinion, is going to drop to about 18,500 at least. When the market gets to about 18,500 to 18,400, I will evaluate the market at that point. That will be a decision point for me. It does look like the markets are going to drop below the 2022 low. But at the moment, I will keep that as an evaluator. I will take that firm call once the markets break below 18,500, 18,400. If you look at the global macros, it does look like the US markets are shaped to decline really sharply.
The rally the US markets