Stock picks of the day: A decisive break below 10,750 may take Nifty towards 10,450
Episode 1539, Aug 08, 2019, 02:00 AM
Nifty50 on August 7 lost almost 120 points from day’s high after the announcement of RBI rate cut of 35 bps on Wednesday.
After a strong rebound on Tuesday, the index is in a bearish zone as it is making lower lows lower highs on a consistent basis.
The index sold off in the last hour of the trading session on August 7 and failed to close above 10,900 levels. PSU banking index was a major loser in Wednesday’s trading session which pushed Bank nifty below 28,000 marks.
Majority of moving averages and oscillators are in the favours of bears, Hence, any bounce back is vulnerable to a sell-off at higher levels.
Going forward, a decisive break below 10750 may drift prices below 10450 which will act as near-term support for the Nifty.
On the higher end, 11000 is acting as a change of polarity. If the index manages to trade above 11000 consistently then it may induce rally towards 11250-11400.