Hot Stocks: Nifty likely to move in a range of 11,700-12,100 this week

The Indian equity benchmark indices took a breather on Tuesday, to close the session on a negative note, thus indicating some consolidation.

The Nifty50 index opened on a positive note, but witnessed resistance at higher levels and thereafter traded with negative bias throughout the session and ended lower by 0.2 percent at 11,917.

Amongst the broader markets, BSE Mid-cap and BSE Small-cap underperformed and ended lower by 1.1 percent and 0.8 percent, respectively.

Except for FMCG and Telecom, which closed in positive, all the other sectoral indices witnessed selling pressure with Healthcare, Consumer Durables, and Capital Goods being the top losers.

We have a long list of corporates who will be announcing their results during the week which will dictate the near term trend. We feel Nifty may see some consolidation after the recent rally, but the bias would remain on the positive side. It could trade within 11,700-12,100 range this week.

Importantly, almost all the sectoral indices are contributing to the move and we feel banking and metal could outshine the others in the near future.

Considering the overall trend, we suggest continuing with a “buy on dips” approach and focusing more on the stock selection.