One leg of upmove over; it's time to consolidate: Mitesh Thacker on markets
In the short term, the tide as of yet appears to be on the upside. We might require few days of consolidation, before Nifty starts moving up again, says Thacker.
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In a chat with ET Now, Mitesh Thacker, Technical Analyst, miteshthacker.com , talks about how the market may behave in the coming sessions.
ET Now: Do you see Wednesday’s fall as a breakdown for the market? Is 8,350 on Nifty a level at which the markets could stage a strong rebound, if some clarity emerges on the global front?
Mitesh Thacker: There has been a minor breakdown for sure. We have been calling for something in the last two days. This is due to the fact that we have had eight straight days of gains and we were quite overbought on the intraday charts. So, profit taking was expected. What is important is that Nifty should not break below key important levels on the downside.
The first level would be around 8,300 and then 8,240. In case the Nifty manages to hold on to either of these levels and then consolidate for a couple of days and comes out of the overbought situation, then we are in for a stronger up move, which could push the index get past 8,450-8,500. It may possibly help the index head towards 8,600.
Therefore, in the short term, the tide as of yet appears to be on the upside. That said, we have completed one leg of the up move in the last seven-eight sessions and we might require a few more days of consolidation, before we start moving up again.
ET Now: Do you see Wednesday’s fall as a breakdown for the market? Is 8,350 on Nifty a level at which the markets could stage a strong rebound, if some clarity emerges on the global front?
Mitesh Thacker: There has been a minor breakdown for sure. We have been calling for something in the last two days. This is due to the fact that we have had eight straight days of gains and we were quite overbought on the intraday charts. So, profit taking was expected. What is important is that Nifty should not break below key important levels on the downside.
The first level would be around 8,300 and then 8,240. In case the Nifty manages to hold on to either of these levels and then consolidate for a couple of days and comes out of the overbought situation, then we are in for a stronger up move, which could push the index get past 8,450-8,500. It may possibly help the index head towards 8,600.
Therefore, in the short term, the tide as of yet appears to be on the upside. That said, we have completed one leg of the up move in the last seven-eight sessions and we might require a few more days of consolidation, before we start moving up again.
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