Podcast | Stock picks of the day: Keep a strict stop loss below 11,500 for all long positions

Nifty50 has been recovering gradually with a lake of momentum. However, the total recovery has been just 126 points from the recent low of 11461, registered on July 9, 2019.

This recovery seems more like a pullback as Nifty has not even surpassed the 5-days EMA on a closing basis. This indicates that the index getting supply at a higher level with bears holding dominance.

From the budget day’s high of 11982, the Nifty50 has corrected for more than 500 points towards 11461. The Fibonacci retracements of this entire move project the resistance at 11660, 11721 and 11783 for Nifty.

There are multiple pieces of evidence projecting the support at 11500 odd levels. The first support is placed at 100-DMA, and the second has been upward sloping trend line on the daily charts.

And, thirdly, the gap between 11426 and 11591 registered on 20th May 2019 as a reaction to the exit poll outcome will act as a support.