Mitesh Thacker's top picks for today's trade

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

Q: What's your call on the Nifty? Do you think the Nifty is good for 5,000 or you would start drawing the line here suggesting that downside is more probable?

A: I am waiting for some kind of signal from the index. We have seen a good decline in the Nifty and then a bounce back. According to me, 4,930-4,950 levels was a very much talked on the street. The Nifty, before falling down, had taken support in this range for five-six times. So that's where people got stuck in this range who were buying at around 4,950 levels are now coming to offload their stocks. This will be critical supply area. Next few days could be important in the sense that if we go into consolidation and breakout that will suggest some kind of good strength into the market. However, if we remain sideways, tentative and then see some kind of distribution pattern happening. I believe that we will go down side. So next few days will probably clear the air as to where we are heading or on a slightly longer-term directional basis.   

Q: A couple of chart checks on stocks which were active on Tuesday was Sesa Goa . Did you have a look at Exide from auto ancillaries?

A: Exide is a stock which I am not tracking. Sesa Goa has been doing very well; it corrected to levels of around Rs 280-285 and then bounced back. On the upside, Rs 340-350 will be a very severe test for this stock. This stock after the announcement of the quarterly result fell down with a price gap, so that's the gap at around Rs 340 which will attract a lot of supply. So at Rs 340, I would advice people to book profit and get out of the stock.   

Q: Ashok Leyland moved 20% in a week. What about Hindustan Oil Exploration Company (HOEC)?

A: HOEC was circuit up yesterday. This has been a case of stock being in long-term uptrend with good breakout on monthly charts. For the past few weeks, we saw some kind of corrective or a declining action. I believe that the long-term chart still looks very attractive on the monthly and the quarterly charts. So on these kinds of declines this stock is a good buy and hold for somebody who is has a perspective of around six months and more. Hence, I would advice buying this stock on all declines. The stock will probably not only cross its highs of Rs 395-400 and probably go even higher. Coming to Ashok Leyland, this is one stock which has been showing tremendous strength. I think Rs 55-57 is the short-term target. However, looking at the price movement and the way the price charts are shaping up this could go even higher.