HDFC Sec: Small banks, telecom look good

HDFC Securities is of the outlook that the main indices are showing signs of consolidation as they continue to trade in a narrow range. Narrow trading ranges are usually followed by an expansion of the trading range.

Traders are therefore recommended to be on the look out for this expansion in the trading range and initiate fresh positions depending on the direction of the breakout.

Small banks, capital goods, and telecom stocks could do well.