Stock picks of the day | Nifty in a choppy trend; strong support seen at 10580-10600

The Nifty has witnessed a fall of 335 points from the high of 10985 registered on 19th December 2018. From the bottom of December 2018, the Nifty rose more than 650 points from 10334 to 10985 till December 19, 2018. This steep rise was registered in the span of just seven sessions. In last four sessions, Nifty has witnessed a correction of 335 points from the recent high of 10985.

At 10660, Nifty has completed 50% retracement of the entire upswing seen from 10334 to 10985. Next Support for the Nifty comes at 10582, which happens to be 61.8% retracement level. 

Nifty has reached below 20, 100 and 200 DMA but still maintains the level above 50 DMA support. 50 DMA for Nifty is currently placed at 10579, which also coincides with the 61.8% retracement support mentioned above. Any close below 10580 levels would definitely raise a question against the sustainability of a positional uptrend.

As far as short term is concerned, Nifty is forming an expanding triangle on the daily charts, which indicates the choppiness in the short term trend. Oscillators also are not showing clear cut direction for the Nifty in the short term.