Stock picks of the day: Nifty likely to trade in range of 10,850-11,280 with mixed bias

On the weekly chart, the index has formed a Bearish candle with a long lower shadow indicating buying at lower levels.

The index is also sustaining below its “Up-Sloping Channel” breakdown a level which signals downtrend on short to medium-term charts.

The chart pattern suggests that if Nifty crosses and sustains above 11,080 levels then it would witness some pullback action which would lead the index towards 11150-12250 levels.

However, if the index breaks below 10850 levels it would witness selling which would take the index towards 10800-10730 levels.

The Nifty is trading below 20, 50 and 100-day SMA's which are important short term moving average, indicating negative bias in the short term.

The Nifty continues to remain in an uptrend in the long term, so buying on dips continues to be our preferred strategy. For the week, we expect Nifty to trade in the range of 11280-10850 with mixed bias.

The weekly strength indicator RSI and momentum oscillator Stochastic have both turned negative and are below their respective reference lines indicating negative bias.