Some midcap high beta stocks could do well in near term: Mitesh Thacker

In a chat with ET Now, Mitesh Thacker, Technical Analyst, miteshthacker.com, talks about the high beta stocks.

ET Now: What will you do with the high beta pocket in particular, because while the market has come off today these stocks have actually made a meaningful move?

Mitesh Thacker: Even if the market was to come down, the undertone is very strong. In that sense we have seen lot of stocks some of which have been leading the rally, some of which have been lagging behind the rally. Very clearly, this market might churn and you might see some of the laggards — especially if they are high beta — try to catch up after the strong market move. That kind of individual stock-specific activity would be okay, but overall the strategy for the major indices would be to wait for some kind of decline and pullback to happen.

The market still is looking on the upside, the trend is on the upside. But it is extremely overbought. Barring CNX IT, both the Bank Nifty and the Nifty are hitting significantly high and overbought level. So, the idea would be to wait for a pullback to buy into the indices or the frontline stocks. But some of the midcap high beta stocks could still do well. Given the fact that the overall tone of the market is bullish, we will continue to see momentum and breakouts followed by strong buying.