Bajaj Auto is in the process of breaking down: Mitesh Thacker
"There are chances that we might actually exceed that on the downside, so two-wheelers is a space which I would look for shorting it out."
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| Updated: In a chat with ET Now, Mitesh Thacker, Technical Analyst, miteshthacker.com shares his views about two-wheeler segment stocks.
How do you propose traders should approach strength namely FMCG and two-wheelers when markets are in a rally or a pullback mode, should traders avoid defensives?
It is the two-wheeler segment which is attracting a lot of worries on the technical charts from my side. Hero MotoCorp has already gone through a correction but we are not yet done. You might get pullbacks like we are getting one in the markets now but you will see supply re-emerge at higher levels.
Similarly, Bajaj Auto is just in the process of breaking down. It has already broken down its short term support trend line. What we might get is a couple of days of pullback but otherwise the structure is definitely weak and over there, at least 110-120 point kind of decline from here which is a pullback to levels of 1500 looks likely.
There are chances that we might actually exceed that on the downside, so two-wheelers is a space which I would look for shorting it out.
How do you propose traders should approach strength namely FMCG and two-wheelers when markets are in a rally or a pullback mode, should traders avoid defensives?
It is the two-wheeler segment which is attracting a lot of worries on the technical charts from my side. Hero MotoCorp has already gone through a correction but we are not yet done. You might get pullbacks like we are getting one in the markets now but you will see supply re-emerge at higher levels.
Similarly, Bajaj Auto is just in the process of breaking down. It has already broken down its short term support trend line. What we might get is a couple of days of pullback but otherwise the structure is definitely weak and over there, at least 110-120 point kind of decline from here which is a pullback to levels of 1500 looks likely.
There are chances that we might actually exceed that on the downside, so two-wheelers is a space which I would look for shorting it out.
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