Stock picks of the day: 11,800 on Nifty is likely to act as a vital support zone
Episode 1284, Jun 07, 2019, 02:00 AM
The ongoing DHFL crisis, delay in monsoon arrival and Trump's extended tariff threats on China and Mexico led to a sell-off on Dalal Street on Thursday.
The Nifty after forming a bearish Harami candlestick pattern on the daily chart on Tuesday saw an extended level of selling pressure as the psychological support of 12,000 was broken.
Our weekly analysis also indicates that the Nifty is facing stiff resistance at the rising trendline resistance zone which is around the 12,200 levels.
Going forward, the 11,800 is the vital support zone, and if that is breached on a closing basis, it could drag the Nifty lower towards its 50-DMA support of 11,650 zone. It would be wise to remain cautious in the near-term.