Market undertone bullish, but expect some choppiness ahead: Mitesh Thacker

In a chat with ET Now, Mitesh Thacker, Technical Analyst, miteshthacker.com, shares his view on how the trade may pan out next week.

ET Now: Would it be a wise strategy to be long on the market after the last three fairly good sessions or would you be slightly more circumspect of an uptick now?

Mitesh Thacker: Not really. Nifty has failed to cross 8,550 on Friday, but the participation has slightly become broader. So, unless Nifty starts breaking below 8,400, I do not think that I would be worried on the downside.

We might get into some kind of bearish tone only below 8,400. There might be some choppiness in next few days, but the direction appears to be on the upside. Importantly, not many have noticed that the CNX IT gained by nearly 2 per cent for the day and managed to get past its 200-day average.

A lot of IT names have given buy signals as well. Since, the banking index is doing pretty well, the PSU index and the IT index are also doing pretty well. A good part of Nifty is showing some kind of an upward traction.