Stock picks of the day: Nifty likely to face resistance at 11,750

Nifty50 witnessed a spectacular rally on Wednesday as it reclaimed 11,700 levels. The latest price action has helped Nifty to get back into the rising wedge which it broke two days back.

On the daily chart, a decent green candle is visible. The index found support at the consolidation low on the daily chart which pushed the index higher. 

The steep rally in the index could not pull the head of the momentum indicator RSI (14) as the daily RSI is in bearish crossover even after a smart rally in the index.

The Nifty has managed to close the gap of the bearish island reversal pattern which invalidates the said pattern. 

Now, if the market opens on a positive note on Thursday and sustains above 11,750 we may see the index moving into a new high zone in the short term.