Expect more corrections in metals stock: Mitesh Thacker

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

ET Now: Markets are looking okay. 7940-7550 levels on the Nifty is still intact. The news has been damaging but Nifty has not fallen a whole lot.

Mitesh Thacker: It is the CNX metal index which is coming out as some kind of a drag on the Nifty. It is down by just about 3% or so and that is keeping the Nifty check but otherwise the overall structure still has not been disturbed though couple of metal stocks have gone into some kind of sell mode.

We have had sell calls in Tata Steel earlier but I have seen a breakdown in Jindal Steel today as well as Hindalco. So for the next few days you will see some more correction in the metals stock so about 5% to 6% kind of drop can still happen the way charts are shaping up right now. So I would be slightly negative over there but broadly otherwise we are still trading with a long bias mostly on stocks and the recommendation which I have for today are a buy on HCC, it was a recommendation roughly at about levels of 39 it has already moved up and met the targets of 41 around 39 can be bought with a stop below 37.90 for a first target of 41 which can be scaled up to about 44 and a sell on IFCI below 35, sell then with a stop at 36 look for targets of 33.