Stock picks of the day: A break below 11,550 could extend the correction towards 11,500

The Nifty-50 index continued to slide lower following a gap-down opening and ended trade sharply lower amidst global selloff.

Further, the Volatility Index simultaneously rose a massive 11 percent in trade as traders initiated fresh shorts, suggesting weakening uptrend. 

However, it managed to take support at the trendline formed joining the recent lows of 11,550. A sustained trade above this support line i.e. 11,550 can trigger short covering which could take the index towards 11660-11730.

On the flip side, a breakdown from the support of 11550, can extend the correction towards levels of 11500-11425.