8,320 holds the key for Nifty; explore shorting opportunities in banking space: Mitesh Thacker

In a chat with ET Now, Mitesh Thacker, Technical Analyst, miteshthacker.com, shares his view on the direction of the market.

ET Now: What is your view on the market?

Mitesh Thacker: One must note that 8,320 level is an important swing low for the Nifty. The index has bounced back twice from the level.
If the level is broken, I would look at 8,200 and, subsequently, sub-8,000 levels on the index. Therefore, for the time being, 8,320 is something which I would keep a very close watch upon. In case the level starts to be taken out, 8,200 should be the next support area for the index. Within this entire framework, the Bank Nifty and banking stocks are the ones where you would continue to be exploring further shorting opportunities. While, CNX Bank has clearly gone into a strong underperformance phase, one may expect some support coming in from IT stocks. Thus, 8,320-8,200 looks to be the next port of call. We will the continuation of choppiness in the market with downward bias for the next seven to eight sessions.