Stock picks of the day: Nifty above 11,000, hopes alive for further relief

Nifty50 started trading for the week on a positive note and rallied higher during the week to surpass the 11,000-11050 mark on closing basis.

Although the index witnessed some retracement in Thursday’s session from its highs, the minor dip was bought into on the last day of the week and Nifty ended well above the 11,050 mark.

Despite a truncated week, the Nifty managed to clock decent gains over a percent on weekly basis, keeping hopes alive for further relief.

During the last week, we had highlighted the formation of a reversal pattern on the weekly chart of Nifty, Bank Nifty and the Nifty Midcap50 index.

This, along with the ‘Fibonacci Time Retracement’ had indicated about a probability of an up move in the broader markets. During the week, index along with the broader market witnessed a decent up move which was on expected lines.

Now, if we observe the Nifty daily chart, it is seen that the recent price action has also led to a formation of an ‘Inverse Head & Shoulders’ pattern which is a trend reversal pattern.