Bullish on PSU Banking stocks; likely to go up by 14-16%: Mitesh Thacker

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

ET Now: How are you actually positioning yourself on the Nifty?

Mitesh Thacker: For the last few days, we have been advising selling into the 8200 strike call and the 8000 put, clearly anticipating some kind of range bound movement. The premium has dropped from about 75-78 to about 55 levels. I still believe that this kind of range bound movement will continue but what is happening today is strong action in the PSU banking stocks as well as the CNX PSU banking index. My belief is that the CNX PSU banking index has given a strong buy signal. It should possibly test the high which it had made in month of June which is around 4000. It is at about 3750-3760 right now and possibly even surpassed 4000 levels and head toward 4300 levels. So if you are talking about broadly 12-13 per cent kind of upside in the banking index itself, that is the CNX PSU banking index, then the stocks could possibly go up by 14-16 per cent or so. So that is where the action would be for the next few days. Few weeks to come by and that is where we will focus upon.