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: Even if we settle in a Nifty range of let us say 200-300 points some would argue it is not a bad outcome given the kind of run up we have seen and the fact that of late it has been a one way street for Indian markets?

Mitesh Thacker: Technically you can always argue that it is not a bad outcome but typically what will happen is that most of the short term or retail participants would be trading the broader markets and therefore they might not like this kind of an outcome which is happening.

The broader market, the CNX midcap index which had just been on the verge of giving a buy signal, reversed. So, clearly next few days could bring in more choppiness.

The metals are also not participating and defensives are getting into some kind of action. You might not see the big breakout which typically happens when the markets or indices break all time highs. If that momentum is missing, this breakout is suspect and if 7830-7850 goes then a false breakout or a failure breakout happens. We are possibly getting into a bigger range of about 7500-7550 to about 7850-7900 on the upside.