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    Focus on banking stocks for the next few days: Mitesh Thacker

    Synopsis

    "That is where the outperformance is coming from. That is where the stronger buy signals are being seen on the charts."

    ET Now
    In a chat with ET Now, Mitesh Thacker, Technical Analyst at miteshthacker.com, shares his views on the market. Excerpts:

    ET Now: How would you position yourself on the Nifty as well as the Bank Nifty in tomorrow’s trade?

    Mitesh Thacker: I would like to comment on Bank Nifty first because that is possibly the one sector which is not only outperforming but also adding a lot of weightage or movement on the Nifty on the upside. The Bank Nifty is very close to 18,850-18,860 levels, which is where it had peaked earlier. If it continues to show strength - and the structure has definitely been positive for the last few days - then we are looking at possible targets of 19,500 to about 20,000 on the Bank Nifty itself, which should add fillip to the Nifty.

    Thus, while the Nifty is very close to the supply zone of 8,330, the Bank Nifty could help it cross that big hurdle. Once that happens, the Nifty could start aiming for targets of around 8,450-8,500 on the upside. The momentum is most likely to extend on the upside.

    But having said that, traders should be focussed on banking stocks, when they are trading individual stocks. That is where the outperformance is coming from. That is where the stronger buy signals are being seen on the charts. Also, when the markets did correct in the last two-and-a-half weeks, it was a lot of banking stocks which failed to start getting below their 20-day average. Hence, that is the sector to focus on for the next few days.
    The Economic Times

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