Nifty ends at 1-mth high: Will the momentum continue?

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Nifty ends at 1-mth high: Will the momentum continue?

In an exclusive interview with CNBC-TV18, Mitesh Thacker, Technical Analyst, miteshthacker.com and Mehraboon Irani, Centrum Broking, speak about the markets and give their outlook going forward.

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Excerpts from Closing Bell on CNBC-TV18 Watch the full show » RELATED NEWS Envision Capital's views on stocks/sectors Have contra call on technology, metals: L&T AMC PN Vijay sees Nifty testing 5300 on low volatility Nifty to trade in 500-pts range with risk: Purushottam ALSO READ See what other experts are saying about markets See what FIIs are saying about the markets See what Udayan Mukherjee is saying about the markets

It's a fantastic start to the week. The markets opened in the green, but retraced a little during the session. However, a late surge saw the Nifty end just a tad shy of 5,200 level.

The benchmark Nifty rallied for the fourth consecutive session on positive global cues and closed at one-month high. It ended the day at 5197 up 78 points. The Sensex shut shop at 17338 up 273 points.

In an exclusive interview with CNBC-TV18, Mitesh Thacker, Technical Analyst, miteshthacker.com and Mehraboon Irani, Centrum Broking, speak about the markets and give their outlook going forward.

Here is a verbatim transcript of the exclusive interview on CNBC-TV18. Also watch the accompanying video.

Q: We were talking about this possibility on Friday and it looks like it could be a good idea to keep your longs open?

Thacker: That is correct. Even today I am wondering whether we should keep the longs open despite the fact that we are very close to a very important level of 5200-5210. I do expect some good supply to emerge at these levels, but there are two important factors over here. One is that on Friday it gave a bearish pattern, which was being formed on intraday charts.

Secondly, the entire global problem or the European problem was reflected in charts of metal sector and metal stocks. Today, you are seeing some kind of a reversal happening in most of the metal counters. I think probably they are good for another 8-10% rise so if they are looking technically good probably you are not in an environment where you will get a lot of bad news. So I think it looks pretty okay. Maybe we might take a stop at 5200, but eventually we might go even higher.

Q: What's your sense? Could the markets surprise by heading back to 5300-5400 because that was not the consensus view even a week back?

Irani: I am pleasantly surprised. I think the broad based momentum which we are seeing in the market today and confidence possibly coming at least from the short term rally and you would have the advance tax numbers possibly starting to filter in from tomorrow, and if they are good which I expect them to be good, people will start saying, fine let whatever happen to Europe, as long as India is doing well because all sorts of positives are happening in India.

Once we cross the 5200 level mark which virtually anybody and everybody on the street is talking about, possibly there is talk of 5300 or 5400 becoming distinctly possible.

But having said that, frankly the level of confidence honestly from the investment angle is still not there. We cannot take away the Europe problem in hurry. The problems are still very much there. My concern is very honestly as I mentioned last time it is only from the angle of outflows. I think the figures of mutual funds also are not very healthy.

If there are further outflows happening and if there is a dent somewhere globally, possibly again we will start looking at lower levels. But for the time being, yes I think some sort of confidence as far as traders go, has come back. It's definitely not ruled out that we will see higher levels in the very short run.