Podcast | Stock Picks of the Day: 1 largecap & 2 midcap ideas that may return 8%

The June series and specifically this week has been vicious for equity markets as indices saw deep cuts in the past few days. The midcap and smallcap space continued to get butchered, but heavyweights have started feeling the heat and participated in the current downfall.

Markets cracked as there seems to be a lot more challenges than opportunities at the current juncture. Rising US-China trade war concerns; weakening rupee, which hit a new low against the dollar on Thursday; and higher crude oil prices are all major factors that dampened sentiment on the street.

The Nifty fell sharply on Wednesday after forming a Bearish Engulfing Pattern on the daily chart. We also observed follow up selling pressure on Thursday, which dragged the index below the 10,600 levels. However, 10,550 played an important support zone. If the index fails to stay above the support area in the next few trading sessions, further selling cannot be ruled out.

Bank Nifty too is indicating weakness. The Nifty private bank index, which was resilient until now, has also witnessed a Symmetrical Triangle breakdown on the daily chart. State run banks continue to remain the weakest of the lot.