Stock picks of the day: Hold Nifty Longs with strict stop loss of 10,900
Episode 1578, Aug 20, 2019, 02:00 AM
Nifty has been gradually moving up. Nifty has seen a fall of 1,321 odd points from the all-time high of 12,103, registered on June 3, 2019, to the recent low of 10,782.
By joining daily lows, upward sloping trend line projects the strong support at 10,900 odd levels.
If we were to take 38.2 percent and 50 percent retracements of this entire swing, it comes at 11,287 and 11,440.
Nifty is currently placed below its 20, 50, 100 and 200 DMA. The index has been maintaining Lower tops and lower bottoms on the daily and weekly charts. This setup indicates that the overall trend has been bearish for Nifty.
The 20 days EMA (11,138) and 200 DMA(11,183) are the near term hurdles for the Nifty.