By Rohan PatilTechnical Research Analyst, Bonanza Portfolio Where we are: Last week’s candle has closed below the previous week’s Shooting Star candlestick pattern, which acts as a confirmation.

Since July 5, Nifty corrected sharply on the daily time frame and violated its intermediate support of 11,600 by witnessing breach of smaller degree trendline.

Bulls made several attempts to surpass 12,000 mark but were capped for the previous couple of occasions.

Intermediate support for the index is now at 11,400-11,200 mark.

Decisive break is needed that will could possibly trigger further weakness. What is in store: The list of the stocks taking the market higher gets narrower with each advance in the market and so the stock selection is getting even more important.

Positive trend on the weekly time is still intact as Nifty 50 is trading in a higher-high higher-low formation, which is sustaining within a Rising Channel Pattern.

Previous three-month candle has formed a small body which indicates narrow range trading in a market after registering a life time high.

Going forward, Nifty is likely to consolidate in the range of 11,800 and 11,400 as long as it fails to break the bands on the either sides.

A decisive pullback above 11,800 may attract further buying in the market which may lead to an upward move towards 12,000. What could traders do: As long as Nifty sustains above 11,400, the trader may trade the range with an upside expectation towards 11,750 and 11,900.

Long positions can be kept as long as Nifty doesn’t break 11,400.

Avoid the weak sectors like auto and IT.

Some of the technical picks where traders can catch the dip for 10-12 per cent in the short term for the stop loss of 5-6 per cent.

Among the stocks are Powergrid, CESC, McDowell, Can Fin Home are likely to remain in strength.