Stock picks of the day: A close below 11100 could take Nifty towards 10900
Episode 1198, May 16, 2019, 02:30 AM
Nifty has been consolidating after a sharp fall from the recent high of 11789. During the day, the Nifty has erased all the gain it made on Tuesday.
However, the bearish trend has already started to weaken, at least for the very short term. In addition, the index is seen to have found initial support at a historical swing high on the daily chart.
On a Heiken Ashi plotting, the chart has been consolidating on the daily frame. All these set up indicate a short term pullback.
On the higher end, the Nifty can witness a pullback towards 11400. Going forward a sustained trade above 11400 may induce further rally towards 11570.