Stock picks of the day: Eye midcaps on declines; 2 stocks which could give 17-18% return

Nifty is likely to extend the ongoing consolidation in the broad range of 12000–11600 in the coming weeks. It will help the index form a higher base by cooling off from the overbought situation developed on the weekly time frame.

The index has already taken 11 sessions to retrace 90 percent of preceding 11 sessions up move post exit poll low (11600). The slower pace of retracement signifies prolonged consolidation and healthy price structure.

Therefore, we believe that one should not panic in the ongoing prolonged consolidation (12000–11600) and instead capitalise on the extended breather towards the major support area of 11500-11600 as buying opportunity in quality stocks

The broader market is undergoing a healthy consolidation as Nifty midcap, Nifty smallcap indices have been witnessing a slower pace of retracement.