Stock picks of the day: Nifty50 likely to trade in the range of 10,740–11,100

Nifty50 has the potential to retest the peak of 11,141 if the low of 10,740 remains intact in the coming week. In line with the forecast, the index attempted to meet the 11,100 mark but just fell short this week.

Now, the current price action has helped the index convincingly cross the previous week’s high after 10 weeks.

This is an encouraging sign for the bulls, which indicates that the bottom of 10,740 should hold good for some more time and the Nifty50 could reach higher levels.

On the contrary, the daily chart of Nifty future indicates that the recent rally was backed by low volumes, which could probably lead to some profit booking at current levels.

Thus, traders are advised to wait and avoid aggressive long bets until we see a significant buying interest which could take the index higher.

A breakout above 11,141 could lead to an upside towards 11,300–11,400. However, a breach of 10,740 would bring the bears back on the front seat, which will pull the index back to the 10,600 level.