Stock picks of the day: A decisive break below 11,000 may drift prices below 10,800
Episode 1508, Aug 01, 2019, 02:00 AM
Nifty50 on Wednesday rebounded almost 100 points from day’s low and closed with a marginal gain of 32 points. The Nifty50 bounced back towards its psychological level of 11000 levels.
Following the brutal selloff that Nifty witnessed from July 5, the 50 pack index found support near 11,000 mark which is supported by a Fibonacci ratio.
The market will remain vulnerable to selloff at a higher level. Given the current technical setup, the market is well settled below its 50-DMA on weekly intervals.
The medium-term trend is still negative as the benchmark index is trading in a lower high. And lower Low formation on the daily chart.
Now, a decisive break below 11000 may drift prices below 10800 which will act as near term support for the Nifty.
On the higher end, 11300 will act as a crucial resistance. Going forward, sustained trades above 11300 may further fuel the rally towards 11450.