The downtrend may continue if Nifty50 fails to get past 7,600: Mitesh Thacker

In a chat with ET Now, Mitesh Thacker, Technical Analyst, miteshthacker.com, shares his market outlook.

ET Now: How are you mapping the index as also your stock specific strategies?

Mitesh Thacker: See the index, one, has been extremely oversold but has not shown the strength to turn around from this declining move. We have had two or three intraday bounce backs each one failing to get past that zone of 7,590-7,610 which is where lot of intraday moving averages are converging so till that level is crossed, I would not turn positive. However, shorting in an oversold market may not be the best idea. So, for the next couple of days there has to be more stock-specific approach.

It is a market which is, yet to show any kind of directional bias after being oversold and is failing to give any kind of significant bounce back. In case, we do consolidate in this range of 7,450-7,600 and continuously fail to get pass 7,600, then after three to four sessions of consolidation, the market is likely to resume the down trend, again.