Stock picks of the day: A decisive break below 11,400 may drift prices below 11,100
Episode 1425, Jul 11, 2019, 02:00 AM
Nifty50 has now moved below its recent swing low which was placed at 11625 and so far sustained below it. The Nifty has given a smaller trendline breakdown on the daily chart on Wednesday.
The recent movement is an indication for rising pessimism among the participants. Going forward the huge gap which was left open during exit poll day is likely to get filled.
From the candlestick perceptive previous two-day candle Hammer & Inverted Hammer comes from bullish reversal family. Henceforth, bounce back from the current level cannot be ruled out.
The medium-term trend still remains positive as the benchmark index is trading in a Higher High and Higher Low formation in a Rising Channel pattern.
A decisive break below 11,400 may drift prices below 11,100 which will act as near-term support for the Nifty.
On the higher end, 11600 is acting as a change of polarity as earlier support has become resistance. A sustained trade above 11600 may induce rally towards 11850 - 12000.