Stock picks of the day: Nifty has major support in the range of 11,600-11,500 levels

Nifty50 crossed the 12,000-level for the first time ever during the previous week on political stability as the BJP-led NDA forms government for a second consecutive term.

On the weekly chart, the index has formed a strong bull candle with a higher high and higher low and a bullish gap between (11407- 11592) below its base signaling strength and positive bias.

The key point to highlight in the current up move is that subsequent to a golden cross in the Nifty. The Nifty midcap and smallcap indices have also recorded a golden cross indicating a major shift in trend direction.

In the technical parlance, when a medium-term moving average (50-days) crosses above the longer-term moving average (200-days) it is termed as a “Golden Cross”.

Going ahead, we expect broader markets to outperform benchmarks, therefore one should accumulate quality midcap stocks for medium term perspective.