Hot Stocks: Book profits in Nifty50 above 12,000-12,200 levels

It has been a week of profit booking so far on D-Street, wherein the benchmarks remained flat but the broader markets witnessed selling pressure.

The Nifty50 has been trading in a band of 150 points. Meanwhile, the Nifty Bank index confirmed a swing breakout above 30,800 but is trading with a negligible change from its previous week’s closing price.

During the previous week, the Nifty50 formed a candlestick formation that resembles a Doji kind of pattern. It hit a low of 11,850, which was breached in a recent session.

In the upcoming session, if the Nifty closes below 11,850, then we might see further profit booking in the markets. The hourly chart of the Nifty shows a head-and-shoulders breakdown with a target of 11,700.

The pattern would be negated above 11,950. Thus, both the weekly and hourly charts, indicate that till the time Nifty clears the 12,000 mark, it is better to remain extremely stock-specific and avoid index-based stocks for going long.