Hot Stocks: Just a pause before the new high! Strong support for Nifty at 11,843

Trading for the week kick-started with an upside gap owing to positive cues from the global peers. However, during the remaining part of the week, we saw the index struggling at higher levels.

The index got stuck in a small band of 150-180 points with gyration on both sides. Due to the tail-end correction on Friday, the Nift50y pared-down major chunk of its weekly gains to conclude on a flat note.

The benchmark index, Sensex, clocked fresh record highs last week and the Nifty is somehow lagging behind a bit. This week, we saw several attempts to go beyond the all-time high of 12103.05.

It appears that traders are a bit cautious whenever Nifty surpassed the 12,000 mark during the day. Looking at Friday’s close, we need to see how the index behaves around 11,843.

If the index sustains below this key intraday support, we may see this profit booking getting extended towards 11,784 – 11,714 levels.

In case of these possible scenarios, we will not consider this as a trend reversal; rather we construe this as a decent profit booking, which is essential for every robust rally.

We continue to remain sanguine on the market and expect Nifty to reach new milestones very soon. Although the index did not do much this week, there were some sectoral themes that played out well and marquee names within these sectors did well for themselves.