Stock picks of the day: Remain bearish with stop loss of 11500 level

Nifty50 has fallen for the ninth day on the trot on Monday. It fell by 130 points on Monday to close at a two-month low at 11,148 levels. From the all-time high of 11856, Nifty has witnessed a fall of more than 700 points.

The Nifty50 has been trading below its 5 and 20-days simple moving average (SMA) indicating a short-term trend turned bearish. The momentum indicators and oscillators have been showing a negative setup on the charts since the last one and half month. 

Underperformance for the Nifty Midcap-100 and Smallcap Index 100 continued where it fell by 2.2 percent and 2.70 percent respectively. The Nifty Midcap Index has been falling for a 6th straight week, resulting into a total fall of 10 percent while Nifty small cap Index is down 11 percent from the April high.

Declining stocks outnumbered advancers for the last eleven trading sessions for the first time since June 2018. The earlier support of 11500 is now expected to act as a resistance for Nifty.