Nifty sees profit taking; 8,300 key level to watch out for: Mitesh Thacker

In a chat with ET Now, Mitesh Thacker, Technical Analyst, miteshthacker.com, talks on what a snapping of eight-day winning streak mean to markets. The Sensex ended 74 points lower, while the NSE barometer ended below the psychological mark of 8,400, before reclaiming it briefly on Wednesday


ET Now: Do you concur, do you think that this is just a blip and the market will rebound quickly?

Mitesh Thacker: My initial estimate is that the 50-pack index Nifty was quite overbought on the short term charts. May be, we are destined to see some profit taking after eight days of one-sided upmove. A level around 8,300 on Nifty should be the first level to be watched on the downside. There is an outside chance that we might even hit levels around 8,240. That said, I would again now wait for some kind of reversal signals from lower levels and use that to buy into stocks as well as indices.

I still think that we will not only hit 8,450-8,500 on Nifty, but will possibly even cross the said range. It might take its own time, but over the next few weeks the broader drift appears to be on the upside. I would use dips to explore fresh long opportunities.