Stock picks of the day: Despite volatility on Thursday Nifty will find support at 11,100-11,000
Episode 1225, May 23, 2019, 02:00 AM
The weekly price action formed a bullish piercing line candle, as buying demand emerged from 61.8 percent retracement of the last up move from 10585 to 11586 levels.
A follow through a strong up move during the first half of the current week saw the index recouping its entire 15 sessions decline from 11,856 to 11,108 in just five sessions signalling faster retracement and robust price structure.
Going ahead, we expect the index to resolve above its current week high of 11,883 and gradually head towards 12,200 levels in the coming weeks as it is the 138.2 percent external retracement of mid April-May decline (11856 – 11108).