Nifty to head towards 8450-8400 levels on downside: Mitesh Thacker

In a chat with ET Now, Mitesh Thacker, Technical Analyst, miteshthacker.com, shares his views on markets. Excerpts:

ET Now: What is it that you would recommend on the index firstly and then your stock specific recommendations too?

Mitesh Thacker: On the index, the fact that we have not tried to fill the gap down today and we have been sideways could point to further weakness. The activity of breaking below important support with a gap and then trying to climb up above the support level 8600 in this case is certainly not positive. So, the approach will be very similar to keep exploring the long opportunities only in the IT sector, possibly couple of pharma names and the most of the market might continue with this decline.

In case we do not get pass 8600-8620 very soon, we might head towards 8450-8400 kind of levels on the downside. The recommendations which I have right now are a sell on or ST/BT on Grasim with a stop at 3737, for targets of 3685; sell on Sesa Sterlite with a stop at 209, for targets of 194 and a buy on Hexaware with a stop below 230, for targets of 246.