Stock picks of the day: Important support for Nifty50 is seen around the 11,500 levels

Episode 1458,   Jul 19, 2019, 02:00 AM

Nifty50 advanced in the past three sessions to hit the 11,700 level, but failed to hold on to the same on Thursday, as trader turned indecisive at higher levels. 

The index formed a ‘Spinning Top’ kind of candle on the daily chart which was followed by a large bearish candle on Thursday. In addition, the current advance-decline ratio remains a concern. 

If Nifty fails to regain 11,720 in the coming week, it may trigger further selling pressure. Important support for Nifty50 is seen around the 11500 zone. 

Bank Nifty, on the other hand, is currently in the process of forming a head and shoulder pattern. The neckline for the same is around the 30200 zone which may also act as a crucial support area. A crack below the same could lead to a fresh breakdown.