Stock picks of the day: Bank Nifty could move towards 31,000-31,200 zone

Nifty50 found support around its 100-DMA of 11450 zone and then bounced back.

The index also created higher lows for the third consecutive day which is another positive development. Going forward, we expect the current market to get carried forward which could lift the Nifty towards the 11700-11720 zone which is also the 50-DMA resistance for the index.

Bank Nifty on the other hand also found support around its 50-DMA which was at 30,600 mark. The index also managed hold above the rising trendline support zone of 30400 which indicates that the higher top higher bottom structure continues to remain intact.

Going forward, Bank Nifty has the potential of moving higher towards 31000-31200 zone in the near term. Support is seen around the 30400 mark.

The Nifty Auto index has also shown signs of recovery and has created a hammer kind of candle on the daily chart. This indicates some revival in the auto stocks are likely in the near term.