Stock picks of the day: Nifty base shifting higher towards 10,746 from 10,637

This mood remained muted largely on the back of weak GDP numbers which hit a multi-year low and hence, after some consolidation, the selling momentum accelerated.

We are almost unmoved on a weekly basis but the development that happened during the week was encouraging and adds further conviction to our previous week’s optimistic stance.

In the previous article, we had highlighted a few notable observations which are hinting towards some hope of relief in the September month.

Addition to that, this week we can see a possibility of base shifting higher to 10,746 from 10,637. The weekly charts of Nifty and Bank Nifty exhibit copybook ‘Bullish Dragonfly Doji’ patterns and the Nifty Midcap 50 depicts a ‘Bullish Hammer’ around the cluster of supports.

We remain hopeful and expect the index to initially head towards 11,100 – 11,180. In fact, we will not be surprised to see this sturdy wall getting demolished quite soon to extend the relief move towards 11,350 – 11,475.

On the lower side, the immediate supports are placed at 10,867 – 10,816 but the validity of above-mentioned pointers remains intact as long as key support of 10,746 – 10,637 remains defended successfully.