Stock picks of the day: Upside hurdle for Nifty is placed at 11,400 – 11,450 levels
Episode 1752, Oct 04, 2019, 02:00 AM
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Nifty50 index recently retested its 200-Days SMA and is currently hovering above the same. On the weekly chart, the index formed a ‘Doji’ candlestick pattern formed near 11,700 mark.
This is a sign of caution for the medium term since the index has started trading below 11,416 which is the low of Doji formation.
Going ahead, if we close the week below 11,416 then it would be a confirmation for a ‘Sell on Rise’ strategy till the time 11,700 is not taken out on the upside.
In case of further downside, a move below 11,240 could lead to more profit taking which can drag the index towards 11,050 level.
The intermediate hurdle on the upside is placed at 11,400 – 11,450 levels. Traders are advised to adopt a mean reversion technique for the index and watch out for opportunities in individual stocks.
This is a sign of caution for the medium term since the index has started trading below 11,416 which is the low of Doji formation.
Going ahead, if we close the week below 11,416 then it would be a confirmation for a ‘Sell on Rise’ strategy till the time 11,700 is not taken out on the upside.
In case of further downside, a move below 11,240 could lead to more profit taking which can drag the index towards 11,050 level.
The intermediate hurdle on the upside is placed at 11,400 – 11,450 levels. Traders are advised to adopt a mean reversion technique for the index and watch out for opportunities in individual stocks.