We’re probably in last stretch of bull run for 2023; great potential for reversal in Bank Nifty around 49K: Jai Bala

economictimes.indiatimes.com:

Jai Bala, Chief Market Technician, Cashthechaos.com, says, “the banking index is the most vulnerable for reversal. It is a very long-term setup and the medium-term setup that is coalescing around the current levels. So, the 49,000 to 50,500 levels for the banking index is going to be pretty significant. One has to be extremely cautious about the banking sector and there is a great potential for a reversal around the 49,000 mark for the banking index.”

After three trading sessions Nifty is finally back to new record high levels. Where do you see this market headed? What do you think is going to be the contributing factor for the market going forward when you look at the Nifty?
Jai Bala: The markets are clocking new highs, but it lost momentum in multiple sectors. But this does not mean the markets are not continuing to go up. It is going to continue to go up. But we need an abundant amount of caution here and your allocation has to be quite light because we are in the late stages of the rally for the market that started from the middle of 2023.

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So, my opinion is that we are probably in the last stretch of the bull run for 2023. So, either in the form of a correction or a trend change, we are watchful of market reversals around this point. This does not mean that you get short or aggressive around here. The trend is still up, but we are on a watch alert for a reversal here.

I want to just talk because post December 20, we have seen HDFC Bank, Reliance, Bharti Airtel have