Nift may touch 5450 on upside and 5370 on downside: Mitesh Thacker, www.miteshthacker.com
In case we fail to close above 5450, next week we might see more declines happening and this trend line ultimately violated.
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| Updated: Mitesh Thacker, www.miteshthacker.com, in an interview with ET Now, talks about the Nifty outlook.
ET Now: Nifty yesterday has closed below 5400, how crucial is that and are you of the view that in the near term there is more pain going forward?
Mitesh Thacker: Pain will definitely be there. We are continuously drifting downwards, though while it appears to me that the last 2 days have been fastest fall but if we look at the last 3 to 4 weeks of price action, it is a slower grind. You drift down by about 150 points, make a new range over there and then again slowly drift down and make a new low. So that is the process which is continuing but technically what is important is 5380-5370, there is a very important trend-line coming up. If that is broken, you might see the pace of decline accelerate, you might see a quick jerk of 100-120 points and 5250-5270 could be tested shortly. That is one important level. On a weekly basis while in the last couple of weeks, we have tested levels of around 5400 and probably even below those levels. We have always managed to climb back on a weekend and close above 5450, so in that sense today is an important day. We are on a weekly closing basis. So I would be watching both these levels closely, 5450 on the upside and 5370 on the downside. In case we fail to close above 5450, next week we might see more declines happening and this trend line ultimately violated.
ET Now: Nifty yesterday has closed below 5400, how crucial is that and are you of the view that in the near term there is more pain going forward?
Mitesh Thacker: Pain will definitely be there. We are continuously drifting downwards, though while it appears to me that the last 2 days have been fastest fall but if we look at the last 3 to 4 weeks of price action, it is a slower grind. You drift down by about 150 points, make a new range over there and then again slowly drift down and make a new low. So that is the process which is continuing but technically what is important is 5380-5370, there is a very important trend-line coming up. If that is broken, you might see the pace of decline accelerate, you might see a quick jerk of 100-120 points and 5250-5270 could be tested shortly. That is one important level. On a weekly basis while in the last couple of weeks, we have tested levels of around 5400 and probably even below those levels. We have always managed to climb back on a weekend and close above 5450, so in that sense today is an important day. We are on a weekly closing basis. So I would be watching both these levels closely, 5450 on the upside and 5370 on the downside. In case we fail to close above 5450, next week we might see more declines happening and this trend line ultimately violated.
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