Advise investors to wait until a bounce-back occurs in markets: Mitesh Thacker

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

ET Now: How you are looking at the Nifty now, given the range-bound, nervous close that we saw in the session? Would you still put a trade sub-8,000?

Mitesh Thacker: As to why it was a nervous close, what has happened is that we have kind of come off by about nearly 600 points on closing to closing basis from the highs of 8,620. We might be in for some kind of bounce back. So it is always difficult to judge when a bounce-back will come.

Eventually, I do expect the Nifty to head towards 7,800-7,850 levels. But in case 8,080 in the meanwhile is taken out, there might be a period of few days of bounce-back happening over there where the Nifty could head towards 8,180-8,200, and then resume the downtrend.

In that sense, it is slightly tricky. But otherwise, most of these sectoral indices, index heavyweights and other stocks are clearly showing a downward bias. So a good strategy would be to wait for that bounce-back to happen.

In case it happens, then short it out rather than taking a blind short at current levels.

ET Now: Your ideas for tomorrow?

Mitesh Thacker: I have a couple of sell calls. The first is a sell on Lupin around 1,390 with a stop at 1,420, would look for targets of around 1,330. And a sell on ACC; I would suggest selling the stock with the stop at 1,395, for targets of 1,330.