Breakdown happens on shorter term timeframe charts which will point to consolidation: Mitesh Thacker

ET Now: Your thoughts on the index stepping back a bit, just marginally really holding on to 6700 and also your conviction buy coming in on UPL with the target of I think 220 on this.

Mitesh Thacker: On the index, one – we had been talking about slightly overbought readings since yesterday. It is normal as Ashwani also mentioned that in strong uptrends also you will have days when the market will kind of stop, chop around, find feet at newer levels, at higher levels. I have talked about 6,780 as one of the targets so we have had high very close to those areas.

The key level to watch for the next few days might be 6,700 and we are now very close to those ideas unless and until we start breaking below that the trend remains firmed on the upside. If we have a breakdown, again it will not call for a bigger reversal because the breakdown happens on the shorter term timeframe charts which will typically point to some kind of consolidation, profit booking, sideways area with slightly more dips coming in.

It could be a new range developing around 6,630-6,650 to about 6,780-6,800 on the upside in the next few days. For the time being, therefore, we have both buy and sell calls but the more bias or the extra bias in the portfolio remains on the long side.