Stock Picks of the Day

The Nifty50 gained 75 points on Monday to close at 11,085 levels, the highest close since 29-January-2018. We are only eighty-five point away from the all-time high close of 11,171 levels.

By closing at 11,085 levels, Nifty has broken out on the daily chart on Monday from a double top resistance level of 11,078 levels

The trend of the benchmark index is bullish, as it is trading above 20, 50, 100 and 200-DMA. The momentum indicators and Oscillators are also showing strength for both the indices.

The next meaningful target for Nifty comes at 11,395, a 100% extension level of the swing seen from 9,952 (bottom of 23 March) to 10,929 (top of 15 May) and from 10,929 to 10,417 (bottom of 23 May).

As far as support is concerned, 10,900 is the level to watch out for in Nifty. The Nifty Midcap and Small Cap indices outperformed the Nifty on Monday by closing with the gain of 1.1 percent and 0.8 percent respectively.

The Nifty Smallcap index has witnessed a total fall of 28 percent in the correction which started from January 2018. During the last week, Nifty small cap index reached to the lowest level of 14- month.

The difference between the largecap and smallcap index has widened further during the week. Though positional setup for the midcap and smallcap indices is still bearish with lower tops and lower bottoms, both the indices seem to have reached oversold zone, which could trigger some relief rally or pullback rally in the coming days.

In the derivatives, we have seen long positions being built in the Nifty Futures’ on Monday as well as last week. FIIs’ also created fresh longs in the Index Futures’ segment in the July series till now, first time after April series.

The Nifty is likely to find an immediate resistance around 11,200-11,250 level, where Calls have been written. Any close above 11,250 levels would result in to further short covering which might Push Nifty to even 11,400 levels