RIL may hit Rs 1,350-1,400 level in the coming months: Mitesh Thacker

In a chat with ET Now, Parag Thakkar, Head-Institutional Sales, HDFC Securities, shares his market outlook.

ET Now: How would you approach trade on the key indices, what would the verdict be on Reliance coupled that up with your stock ideas?

Mitesh Thacker: On the indices, Sensex is oversold and we have not turned the direction as yet. So it is a mix of 2:2 and, therefore, I would want to wait it out. The levels which I would monitor on Sensex would be 24,700 to about 25,000. A break on either side, should give you tradable direction. So, for the time being the Sensex is possibly doing a range of about 300 points and above 25,000 I would expect 25,300-25,350 to be tested.

On Reliance, the long-term charts are turning extremely positive. My sense is that Reliance can possibly, once it stabilises above this Rs 1,055-1,050 level, we will be at Rs 1,125-1,150 will be the next set of targets which the stock could possibly see in the next three weeks. Once those levels are crossed then I am super bullish with targets of around Rs 1,350-1,400 which is what I have said on the channel before. So it is starting a medium to long term trend, accumulate the stock slowly keep on adding on declines even at current levels.

Somebody wants to start good levels to start accumulating you get a 3-5% decline keep adding over there.