Stock picks of the day: Nifty likely to trade in a range of 11,250-10,900
Episode 1571, Aug 19, 2019, 02:50 AM
The Nifty50 continues to remain in an uptrend in the medium term, so buying on dips continues to be our preferred strategy.
The Nifty50 started the week on a flat note and remained in a narrow trading range throughout the week. The index closed at 11,048 with a loss of 62 points for the week ended August 16th.
On the weekly chart, the index has formed a bearish candle and remained restricted within the previous week's high-low range indicating a lack of strength on either side.
The index is moving in a lower top, and lower bottom formation on the daily chart indicating negative bias.
The chart pattern suggests that if Nifty crosses and sustains above 11,100 levels then it would witness buying which would take the index towards 11,200-11,260 levels.
However, if the index breaks below 10,900 level then it would witness selling pressure which would take it towards 10,800-10,750.
The Nifty50 is trading below 20, 50, 100 and 200-day SMA's, which are an important short-term moving average, indicating negative bias in the short term.
The Nifty50 continues to remain in an uptrend in the medium term, so buying on dips continues to be our preferred strategy. For the week, we expect Nifty to trade in the range of 11,250-10,900 with a positive bias.