Stock picks of the day: 10,700 expected to act as crucial support for Nifty

On the daily chart, the Nifty has been moving in a rising narrowing Wedge kind of pattern. In its recent move, the Nifty has moved above the falling trendline within the Wedge pattern which suggests bullish outlook.

Also, a golden cross of 50-EMA and 200-EMA is visible on the daily chart which again supports the bullish setup. The daily oscillator RSI (14) has given a falling trend line breakout which is bullish in nature. 

On the options front, maximum open interest position is visible in 11000 CE (39.43Lakh shares) and 10500 PE (41.17Lakh shares); followed by 11200CE (33.79Lakh shares) and 10700 PE (38.37Lakh shares).

Going forward, 10700 is expected to act as crucial support for the Nifty, and any fall towards 10700 may get bought. On the higher side, 11000 is expected to act as immediate resistance. 

If the index trades above 11000 consistently then it may induce a rally towards 11200. On the other hand, breakdown below 10700 may trigger a short-term bearish move in the market.