Stock picks of the day: Nifty could see a bounce back; Sun TV, Dr Reddy’s Labs top buys

Market participants looked completely dejected following the budget announcement, and it’s clearly reflected in the price action thereafter in the week gone by.

The overall chart structure looks distorted and hence, till the time we are below 11,550 – 11,700, the bears remain in the dominating position.

As far as supports are concerned, 11,200 seems to have earned some respect and below which we can see a sheet anchor support of ‘200-day SMA’ which now coincides with May's low of 11,108.30.

Considering the action on July 26, a possibility of some relief in the forthcoming week cannot be ruled out. In this scenario, 11,350 – 11,450 can be retested.

But, as highlighted above, one needs to be agile and should probably take some profit off the table at least on momentum trades.

In the forthcoming week, we expect stock-specific action to continue and should ideally be avoiding aggressive positions.We reiterate that the ongoing decline is providing excellent opportunity to grab some of the marquee names that had seen gravity-defying moves for a year and are finally undergoing some price correction.