Stock picks podcast for July 11, 2018

Bulls tightened their grip on Indian equity benchmarks in Tuesday’s afternoon session, with the Sensex and Nifty extending their gains for the third consecutive day. Indices hit fresh intraday highs supported by strong global cues, optimism over Q1 earnings and sustained buying in heavyweights.

The markets got a further boost after a Reserve Bank of India (RBI) report showed that the corporate sector recorded robust sales growth in Q4 FY18.

The Nifty surged 0.87 percent to close at 10,947.25, forming a solid bullish candle on the daily chart. It has given a breakout with a strong bullish candle after trading rangebound from eight weeks on the trot. This indicates that the index has a potential to move higher around 11,171 levels (lifetime high levels of January) with immediate support at 10,760 (20-day exponential moving average) and 10,713 (50 DMA).

The index is trading at relative strength index of 63.32 and is showing positive movement. The moving average convergence divergence is trading above the zero line with a positive crossover, which indicates that the bias could remain positive in the short term. The volatility index ended up 0.04 percent at 12.39. A decrease in VIX suggests limited downside and a consolidated upmove in the market.

On the options front, maximum call open interest of 37.01 lakh contracts is seen at the 11,000 strike price, followed by 10,800, which now holds 32.24 lakh contracts. Maximum put OI of 52.07 lakh contracts is seen at the strike price 10,600, followed by 10,700, which now holds 46.70 lakh contracts. Immediate support is placed around 10,700 and 10,600, whereas 11,000 will act as a stiff resistance before June expiry.