Stock picks of the day: Immediate support for Nifty placed at 10,700

Despite recording a positive close last week, Indian markets opened a tad lower on Tuesday’s and witnessed selling pressure throughout the day to end the session with sharp cuts on the back of heavy selloff seen in the PSU Banks.

The Nifty50 failed to hold on to 11,000 levels on a closing basis as fresh short positions created in 10,900 as well as 11,000 call strikes.

From the technical front, the Nifty broke its crucial support placed at 10,830 which was the 61.8% retracement level of the recent rally seen from 10,640 to 11,140.

This is again a bearish signal for the markets moving forward. The immediate support is now placed at 10,700, and a breach of which could trigger a fresh round of selling in the coming sessions.

However, on the higher side, 10,900 should act as strong hurdle for the Nifty going forward.