Nifty likely to touch 8,500 in a week: Mitesh Thacker

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

ET Now: How would you summarise Monday’s trade? You had mentioned that you will go long if Nifty breaches 8,373. You were of view that the level would give a breakout. What levels do you expect Nifty to test in the next few days?

Mitesh Thacker: I would put my bet upon testing of around 8,500 on Nifty. That was the level, where the index made a swing high on April 23, before going into declining trend again. So, the top should be revisited possibly cross.

Now, the range of 8320-8340 woud offer a good support to Nifty . The range should not be broken in the next couple of days. Hence, if you are trading with the very small horizon of about four to five to six days, 8,500 should be the target on the upside.

That is about 130 points higher from present levels. A 50-point stop loss on Nifty is what I would recommend.

I would also like to make a comment on the energy sector. That is where a lot of breakouts were seen on Monday.

Reliance, GAIL and BPCL are three stocks, which I like a lot. I also like ONGC. They may take the index higher. That is where the trading opportunities could be explored.