Stock picks of the day for November 20, 2018

Nifty has broken out from the consolidation range of 10450-10650. It has also broken out above 10710, the intermediate top and 10755, the 200 DMA. However, there is one more resistance which is yet to be taken out is the partially filled gap left between 10755 and 10844. This gap was formed on October 4, 2018 with gap down opening. The 100 days EMA for Nifty is also coincides as a resistance at 10782.

But looking at the Indicators and oscillators setup and higher top and higher bottom formation on the daily charts, it seems that Nifty would climb all the hurdles placed near the current levels and extend gains. We also decipher the formation of inverse head and shoulder pattern on the Nifty daily charts, indicating positional bullish trend reversal. 

The first logical resistance comes at 10880, which happens to be 50 percent Fibonacci retracement of the entire downswing seen from 11760 (Aug 2018 top) to 10004 (October 2018 bottom). The second resistance comes at 61.8 percent retracement placed at 11090. As far as support is concerned it is now shifted upward to 10600.

Two major worries for Indian equity markets - high crude oil prices and weakening currency are sorting themselves out. WTI crude oil fell more than 25 percent from October 2018 top, while rupee appreciated almost 4 percent from October 2018 low.