Stock picks of the day for November 19, 2018

Albeit Nifty50 appears to have registered a breakout, above its 8-day old consolidation zone between 10650-10440 levels; however, it is not looking that convincing.

One prominent reason was that the breakout was on the back of negative advance-decline ratio and with a 64 point narrow range which depicted a small bullish candle on the daily chart whereas on the weekly charts, Nifty formed a ‘Hanging Man’ kind of formation. 

Besides, it appears to be facing selling pressure from its interim top of 10,710, which was registered on 17 October, from where the initial pullback rally was sold off only to make new corrective swing lows.

Apart from this 200-day moving average is placed around 10,754 levels. Hence, the entire zone of 10710-10844 is looking like a massive supply zone which bulls need to absorb to sail smoothly. 

On the downsides, if the index slips below 10,630 levels then it may initially lead to the test of 10,440 in the near-term.