The Nifty has seen a 7-legged upmove from the lows of 7,511, and in each pullback, the index has overlapped into the previous trading ranges, which is not a good sign, says Jai Bala of cashthechaos.com.

Share Market Live

NSE

He expects the Nifty to climb to 10,425 in the immediate term, sees the index sliding in case the US markets fail to hold.

According to Jai Bala, US futures are pointing or further volatility or a steep fall. He expects the S&P 500 to retreat to 2,740, which equates to 9,000 on the Nifty.

He recommends going short on ITC with a target of Rs 140 and stop loss of Rs 206. As for ONGC, he says traders should wait till it falls below Rs 81, and then go short with a target of Rs 60 and stop loss of Rs 93.

He is bullish on Cipla and Glenmark, and on the pharma sector in general. However, he expects prices of pharma stocks to correct 5-6 percent in the short term.