Hot Stocks: Hold longs on Nifty with a stop-loss below 11,600 levels

The Nifty cleared the important resistance mark of 11,800 on October 31 and the possibility of new highs cannot be ruled out in coming sessions.

On the Nifty, 11,980-12,000 could initially act as intermediate hurdle above which it could test 12,200 levels.

The support on the downside has shifted to 11,600 from 11,500.

We would advise traders to hold their long Nifty positions but with a strict stop loss of 11,600. A move below the same might halt the upside momentum and we could witness some profit booking.

With regards to Nifty Bank index, there is something to worry about. On the daily chart, the index is stuck below the placement of the falling trend line formed by joining the important swings of 31,660 and 30,801.

In order to rise further, the Nifty Bank will have to surpass the 30,400 mark. In case it fails to do so, then there could be some profit booking in banking stocks which might put pressure on the Nifty as well.