Stock picks of the day: Nifty likely to see a bounce back towards 11,050 – 11,150

The index witnessed selling pressure which pushed the Nifty50 below the 10650 mark on Friday. But, fortunately, a strong buying emerged at lower levels in the following hour and thereafter, the index saw a V-shaped recovery to not only trim all losses but also to enter a positive territory and reclaim the 10,800 mark.

We are trading in an extremely oversold zone and reached crucial February lows around 10,600. Technically speaking, we can see the formation of ‘Bullish Piercing’ pattern on the daily chart (in Nifty).

The said pattern will show its significance once the index manages to sustain above 10,900. In this scenario, we can expect further recovery towards 11,050 – 11,150.

If Nifty has to regain any strength, the banking index needs to step up. Hence, one needs to closely watch how banking conglomerates perform in the forthcoming week.