Hot Stocks: Remain stock specific as further profit booking decline possible in Nifty

Nifty50 index felt pressure around record highs and slipped back well below 12,000 mark once again, as traders locked profits at higher levels before RBI’s monetary policy due later this week.

From the derivatives front as well, call writers were seen active in 12100 strikes and added hefty open interest (OI) while on the other hand, put writers were seen shedding open interest which points towards limited upside into the prices moving forward.

From the technical front as well, negative divergences on secondary oscillators on a shorter time frame also suggest further downside possibility in the coming week on the back of further profit booking.

However, on broader charts, both the indices i.e. the Nifty & Bank Nifty are still trading in a rising channel with the formation of a higher high and higher bottom pattern.

We maintain our bullish stance intact and advice traders to use these dips to create fresh longs.