Stock picks of the day: It would be wise to remain cautious as high levels near 12K

Markets have been grinding their way higher for the past four days ahead of the Union Budget. The Nifty50 has formed three consecutive higher tops and higher lows pointing towards positive development.

However, fatigue certainly seems to be setting in. The crucial resistance is seen around the 12000 psychological marks while on the downside, 11800 is the vital support area for the Nifty. It would be wise to remain cautious as high levels of volatility is likely.

Bank Nifty, on the other hand, has formed a Doji pattern indicating uncertainty is on the cards. Going forward, the fresh up move is likely only if Bank Nifty breaks past the 31700 zones while short-term reversal is likely to be triggered if the 31350 zones is broken on closing basis.