Nifty to move up higher after consolidation: Mitesh Thacker

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



ET Now: The Nifty saw a record day and a record close and dip buyers are clearly rushing in. What are your views?

Mitesh Thacker: With the election numbers coming out, the uptrend, which existed before that in force, got accentuated and the technical indicator suggested an extreme overbought trading. The next few days after the election outcome were more of a cooling off and that process for some of the stocks is still on.

The Bank Nifty is yet consolidating between 15,500 and 14,700. The Nifty has not broken the earlier highs of 7495-7500, which were the highest intraday closing that we have got. We have got record closing as of now, but eventually the longer-term trend or the medium-term trend that still looks vibrant will play out.

The Nifty after this consolidation will move up higher. Our idea would be to buy on dips, where short-term pullbacks with 10-20 day averages would be ideal opportunities for traders to take trading as well as some positional trades in the markets.

ET Now: Let us nail it down to individual stock recommendations based on chart patterns. What do you like?

Mitesh Thacker: I will suggest traders to look out for buying into BHEL with the stop at Rs 248, for a short term or immediate target of Rs 270 to about Rs 275, while Jindal Steel and Power would also be a buy recommendation with the stop below Rs 309, for targets of around Rs 350, slightly a positional call.