Stock picks of the day: Create fresh longs if Nifty breaks above 10,896 level

Nifty50 fell nearly 1,000 points since the Budget Day on 5th July, largely on the back of relentless selling by foreign institutional investors (FIIs) to close at the lowest level since February 28, 2019 at 10,862 on Monday.

The Nifty Midcap and Smallcap indices plunged 11 percent and 15 percent respectively from the day of Budget till now. The Nifty Smallcap Index is down nearly 45 percent from its January 2018 high, while Nifty is down by about 10 percent from its all-time high of 12,103 recorded in June.

In 2008, when the S&P BSE Sensex breached its 200-DMA for the first time; there was 54 percent of BSE all-listed stocks which were trading below their long term average.