Stock picks of the day: Nifty likely to trade in a range of 10,800-11,200 in Sep series

Nifty50 managed to show some relief post the huge sell-off seen on Tuesday. The index reclaimed 10,800 on a closing basis on Wednesday.

In Nifty, out of 50 stock, there are around 13 stocks which are trading above their 50-DMA, and 15 stock which is sustaining above their 200-DMA which indicates that market is in a bear grip as major of the stocks are below the shorter and longer-term moving average.

On the higher side, the Nifty50 has observed 11,150 as a supply zone. Currently, the Nifty50 pack is trading in a band of 50 and 100-EMA which is placed at 11,200 (50-EMA) and 10,800 (100-EMA) on the weekly timeline.

So, largely Nifty is trading in a tight range of 10,800-11,200. RSI is moving around 38 projecting downward picture.

History suggests that from the month of Nov 2018 to March 2019, Nifty largely traded in the range of 10,550-11,000. In the coming week, one may see the same range will work as a support zone for the index.

On the Options front, maximum Put open interest was placed at 10,800 strikes in September month expiry. On the other hand, on the call side, 11,200 strikes Call which has the highest open interest is likely to act as a stiff resistance.