Stock picks of the day: August expiry likely to be in the range of 10,800-11,200

The index witnessed a V-shaped reversal rally in Nifty but the gains were capped at 11,150 levels. On the lower side, as per the change of polarity principle, the short-term moving average i.e. 20-Days EMA of the index is currently working as a key reversal point.

Last hour buying pushed the price above its important physiological of 11,000 mark on Nifty on Wednesday which has squeezed the body of the candle with a slightly longer wick on its lower side.

The level of 11,150 levels is further supported with the Fibonacci ratio on the daily interval for the benchmark index. Currently, Nifty50 pack is trading in the band of 50 and 100-EMA which is placed at 11,200 (50EMA) and 10,800 (100-EMA) on the weekly timeline.

On the Options front, maximum Put open interest (OI) is placed at 11,000 strikes while the maximum change in the open interest in Call is seen at 11,100 followed by 11,200 strikes.