Good chance of another 150-200 points addition to Nifty in next few days: Mitesh Thacker

In a chat with ET Now, Mitesh Thacker, Technical Analyst, miteshthacker.com, talks about the market.

ET Now: Your closing thoughts on the market? Can the momentum continue?

Mitesh Thacker: In most of the cases, I would bet for the momentum to continue. What has happened today is that we have had a gap-up opening and immediately after gap-up, in the first hour of trade we inched up towards 7700 which were the previous high.

Then during the day we gained more strength and moved up from there. So, as long as we are not filling up this gap — which is between 7650 and 7675 or just around 7680 — it will be nearly a pivot level. We should be looking at the positive set-up on the index and possibly an extension of the current up move. So I would be very simply suggesting traders to trail the stop loss to about 10-15 points below 7680 and hold on to their long position.

As long as we are not breaking below 7680 or not filling up the gap, there is a good chance that we will have another 150-200 points on the Nifty being added over the next few days.

So I would be positive, but again as caution suggests, trailing the stop loss will not be a bad idea.

The Bank Nifty is something which has been intriguing. There has been some kind of minor underperformance from the Bank Nifty, but beyond 15,600 if it can start trading and closing above that levels, we might see some kind of additional momentum. That has been an interesting index to look at.

A lot will depend upon the Bank Nifty as we approach the key events in the next few weeks. As I said earlier, a breakout in the Bank Nifty should lend momentum to the Nifty itself.