Maintain positive bias as long as Nifty stays above 8,720: Mitesh Thacker

In a chat with ET Now, Mitesh Thacker, Technical Analyst, miteshthacker.com, shares his view on where the maket is headed towards.

ET Now: How the market may behave when it resumes trading on Wednesday?

Mitesh Thacker: The NSE benchmark Nifty still remains in an uptrend. We expect to see 8,865 on the 50-pack index. Possibly, the index may eventually move higher to 8,950.

What is happening is that banking and IT indices are not really showing punch. It is the oil and gas and a couple of pharma names which is showing strength. The trend might continue as the pace of the advance slows down in the short term. The Nifty midcap 50 index has given a breakout and that is where possibly action would be.

The market breadth would be positive. As long as the Nifty start breaking below levels of around 8,720-8,730, I would continue to maintain a positive bias. One must use intraday dips to buy into selective stocks, which are showing strength. That is a way, we approach trade. In case we get a break below 8,720 that we will have to take a fresh look at the market.