Stock picks of the day: Nifty set to head higher after two days of consolidation

After an extended weekend, our markets opened flat despite SGX Nifty suggesting a gap down opening on March 5. During the initial trade, Nifty dipped a bit, but after that, we witnessed an upward momentum during the week.

Though the last couple of days did not see much price action, we need to appreciate the fact that despite all Asian bourses falling on the last day, the Nifty managed to close above 11,000. 

For the last few days, the index was consolidating and mid and smallcaps started attracting traders’ attention. However, the first trading day of the week turned out to be the trend deciding day for our benchmark indices.

Due to the positivity, Nifty has confirmed a breakout from the falling trend line on the daily chart. Thus, muted action in the last two days should be construed as a pullback or a breather.