Stock picks of the day: Immediate support for Nifty seen around 11,250-11300 levels

Nifty50 fell more than 300 points during the last three days to close at the lowest level since 16-May-2019. During the July month till now, Nifty fell by more than 4 percent as foreigners have pulled out around $1 billion from Indian markets this month.

Subdued earnings growth and lack of buying support from abroad led to a sharp fall in Indian bourses last week.

The Nifty Midcap and Smallcap indices plunged 7.5 percent and 7 percent respectively in the same period. The Nifty Small cap Index breached crucial triple bottom support of 6000 during the week and now inching lower towards next support of 5660.

The Nifty50 breached the crucial trend line support of 11570 last week, which is expected to interchange its role as resistance. A 200-Day EMA in Nifty is currently placed at 11,297 which is likely to act as immediate support.

Far support stands around 11,100 levels which coincide with the 200 day SMA which is placed around 11130 levels. Oscillators and Indicators on Nifty short term charts have turned bearish and favor the bears.