We may expect a stable, subdued market in next few days: Mitesh Thacker

Mitesh Thacker, Technical Analyst, miteshthacker.com in an interview with ET Now talks about the market outlook.

In a market like this would you even dare to look at any kind of buy strategies purely on the front line stocks, the Nifty 50?

I do not think so. In fact while we are approaching 4900 it held out nicely in the last few weeks. The only sensible way you can do it probably is to reduce your short exposure weight and see if the market is again respecting that level for day or two.

I do not think the 4900 level will hold out for much longer. The fact is that selling is aggravated in the last 15, 20, 30 minutes. My belief is that there will be lot of margin calls happening in broking houses. This could be a short term pain which would allow us to breach through 4900 and then put us on course of retesting the recent lows.

So in this kind of a market scenario where you have fallen by 200 points, we have gone down with a gap, a lot of sell signals would be generated. Lot of daily, weekly breakdowns would be recorded. May be you might get a stability or a subdued kind of a market for next two days but otherwise I do not think attempting long would be very advisable over here.