Stock picks of the day: 200-DMA likely to act as tough support for Nifty
Episode 1487, Jul 26, 2019, 02:00 AM
The markets extended losing streak to the sixth consecutive trading session on Thursday as there seems to be no respite on the Street.
Selling pressure across the board dragged the Nifty to shut below the 11300 zones. Currently, indications point towards the fact that the market is in an oversold zone.
Our weekly chart analysis indicates that Nifty is precariously poised around the support of rising weekly trendline. If the index manages to hold above the trendline then a meaningful recovery is likely.
Going forward, the long term 200-DMA levels of 11130 is going to act as a crucial support area for the Nifty. On the upside, resistance is seen around the 11400 zone.
Bank Nifty too seems to be oversold at the current juncture and a dead cat bounce cannot be ruled out. Crucial support is seen around the 28900 zone while resistance is seen around the 29600 levels in the near term.