Stock picks of the day for November 22, 2018

Nifty closed in the red for the second consecutive sessions. In its recent action the index has crossed above its 200-EMA after several days. The index also crossed above the 38.2 percent retracement level of the previous fall from 11760 to 10004.

However, after rallying almost 8 percent from the recent low of 10004, the benchmark index is looking a bit tired and fallen back below both 38.2 percent as well as 200-EMA in its latest action. In fact; hanging man pattern on Monday has initiated a pause in the rally.

On a closer look we can observe that Nifty is moving within a broadening wedge where it is currently trading in the midway of the wedge. In addition, a bearish crossover of 21EMA and 50EMA is visible on the hourly chart of the Nifty which suggests a waning bullishness. 

On the option front a highest open Interest is seen at 10700 CE which means it would be hard for bulls to take Nifty above 10700 as off now. On the other hand 10500 PE has significant open interest to protect the levels from bears.