Nifty unlikely to fall below 8,250; do not see uptrend either: Mitesh Thacker: Mitesh Thacker

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

ET Now: This move seen on the index must be encouraging. Monday's fall was not a blood bath in any measure. It is not that banks cracked; in fact it recovered quite smartly. We do not have a single infra name in the top 10 losers on Nifty as well. It just goes to show that the texture was not typical of a market, which will fall on global news. It will fall like ninepins. Monday's trading was quite different, isn't it?

Mitesh Thacker: Yes. If you are a layman, then the price action - absorbing such a negative news and then recovering nicely towards the end of the day - show a very positive set up. Even technically also, we had had a consecutive rally for about 8-9 days and there were clear signs of short-term trend reversal.
Now with that kind of movement, we were extremely overbought on the intraday charts. Therefore, some choppiness, some profit booking was on the cards. That happened slightly strongly with the negative news flow on the global outlook. Nifty might now not go below 8,250.

It might not start an uptrend immediately either. But overall, if Nifty does not breach 8,250, then the directional call should be on the upside. Therefore, my sense is that may be in case there is some more news flow happening or some more volatility happening, but 8,250-8,420 might be a range which the Nifty might consolidate into.

Eventually, Nifty should start breaking above 8,420 . Once that happens, we are then looking at 8,600 plus kind of targets. Therefore, the reaction and the position of indicators on the positive side may be it might take a couple of days to start or get into something more far more stronger than what we have seen today but overall nowadays should be used to buy into stocks.