Jaiprakash Associates has resistance at Rs 78: Jai Bala

Jaiprakash Associates has resistance at Rs 78, says Jai Bala, cashthechaos.com.

Bala told CNBC-TV18, "I had expected JP Associates to drop to Rs 52 and the stock has made a low of about Rs 54. The move has been constructive so far but the stock has resistance between Rs 71-78. If it can take out Rs 71, it is going to hit towards Rs 78 but at the moment it just seems like a counter trend rally."

He further added, "More importantly what these stocks do over the next few weeks, post the rise that is going to be important. If they can consolidate near the lows that it made in August that is going to be constructive for the stocks in the medium to probably even longer term but that is going to be important thing in this particular sector. They need to put in a constructive base and then launch their next leg of ascend after that."