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    Expect Nifty to find strong support zone at 8360-8400: Mitesh Thacker

    Synopsis

    "On the downside, 8400 to about 8360 is a strong support zone. Till that has been broken, I would suggest maintaining a long bias."

    ET Now
    In a chat with ET Now, Mitesh Thacker, Technical Analyst, miteshthacker.com, shares his views on what lies ahead for the markets. Excerpts:

    ET Now: How does it look like for the next week because we have had a mixed week, fairly volatile in its own way, sectorally at least and we are hitting expiry. How do you think we shape up?

    Mitesh Thacker: First, despite the fact that we have had a higher close, the breadth was slightly missing, but that could also be a function of some kind of churn or sectoral rotation happening. We did see towards the end, the energy pack coming into play with Reliance, Cairn having notched good gains. Amongst the two, Reliance does look like giving a strong possibility of a good start of short to medium term uptrend and the stock price heading towards 1045-1050, possibly even higher levels.

    Similarly a couple of metal names came into picture. Hindalco had a very strong closing and finally managed to start closing above the levels of 160, which could see headed up towards 175. So overall, there is some kind of divergence at higher levels, some profit booking happening in particular stocks. You have talked about some of the midcap names like Gati, etc, which went through that corrective pullback or profit booking at higher levels. But I do not think it is a big threat to the trend. On the downside, 8400 to about 8360 is a strong support zone. Till that has been broken, I would suggest maintaining a long bias. The only thing is that you will have to possibly identify the right stocks.

    ET Now: What is the sectoral trend that you think is going to now prevail next week for the IT pack?

    Mitesh Thacker: The IT pack had a breakout on Thursday and then there was a lack of followup happening on Friday. The breakout failure typically leads to more consolidation or some correction. So the IT pack could decline and test the lower end of the range, which is around 11,470. I would be worried if we start getting below 11,450 and then that could mean a slightly deeper correction for the CNX IT. But otherwise, as of now, it looks like more of a failed breakout kind of system and therefore the aggressive longs taken towards on Thursday should be violated or should be liquidated in the next one-two days. Nothing much to worry about it, but if we break 11,450, then you might see another 200-300 points being shaved off on the CNX IT.

    ET Now: I want to quickly talk about the chart pattern on Yes Bank. From 703, where does it go?

    Mitesh Thacker: It is kind of having some minor intraday pivot at 705. Once it manages to get that, I should expect the uptrend or the upmove to extend further on the upside and we can look at the targets of 730-735 in the short term. So there is positive setup over here.

    ET Now: Eveready and Eros International have shown good results. The uptrend continues despite the small cap space not really doing too much. Do you like the charts here?

    Mitesh Thacker: Eros has something which we have been recommending earlier as well. I would now suggest holding on with a trail stop loss at about 320. Look for the stock to possibly extend the uptrend to the levels of about 380.

    ET Now: What is on your list for Monday morning?

    Mitesh Thacker: I would suggest a buy on Hindalco with a stop below 156, for targets of 170 and a buy on Reliance with a stop below 982, for targets of 1025-1030.



    The Economic Times

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