Stock picks of the day: Monday’s gap area of 11,591-11,426 is a crucial support for Nifty

This has been a splendid week for our markets and the kind of comeback we made in terms rally seen in the benchmark indices is quite remarkable. Importantly, the global markets had no influence over it as the rally was mainly led by domestic factors.

The first and the last day of the week had some notable development. On the event day, i.e. Thursday, there was massive volatility with wild swings being witnessed. We are back to comfortable zone now; courtesy to Friday’s spectacular upsurge.

This move was crucial for our market as it negated the possibility of forming a ‘Shooting Star’ pattern on the weekly chart, which would have probably turned ominous if we had a close below 11750 – 11700.

But, as we generally say ‘All’s well that ends well’. Going ahead, Monday’s gap area of 11591.70 – 11426.15 is now likely to act as a sheet anchor and we do not expect Nifty to go below this in the near future.