Stock picks of the day: A break below 10,850 on the Nifty could lead to further selling

After witnessing some gains last week, but failed to remain in control as Nifty50 decisively closed below 10,950 mark on Tuesday. The market breadth was tilted in favour of bears on the back of weak global cues.

From the derivative front, Call writers were active in 11,100 and 11,000 strikes along with Put unwinding.

The market undertone is likely to remain bearish in the coming sessions as well. We are continuously witnessing a short build-up into prices which could weigh on the markets.

From the technical front, any decisive move below 10850 mark in the Nifty can trigger a fresh round of selling while on the higher side, 11,100 levels should act as a key resistance area.

We are hopeful that as long as we are trading below 11,100 levels on the Nifty, the current trend is unlikely to change and the index is likely to move towards 10750 levels amid high volatility.