Stock picks of the day: 11,000-11,040 is likely to act as crucial support for Nifty50
Episode 1762, Oct 09, 2019, 02:00 AM
Nifty50 has been falling for the last 6 consecutive sessions. In the previous week, Nifty breached the low of the “Doji” candle which was formed on September 27 which activated the bearish implication.
From the high of 11,695, the Nifty50 has fallen almost 5 percent towards 11,113. The Nifty50 has now reached below its 100 and 200-DMA.
The Nifty Smallcap Index has breached the level which was seen on 19th Sep 2019, the day before the corporate tax cut was announced.
The whole 8 percent rally seen after this announcement has got fizzled out. This does not augur well for the overall market breadth and signals further bearishness in Mid-Smallcaps from here.
The Nifty50 has retraced more than 50 percent of the entire upswing seen from 10,670 (19th Sep Bottom) to 11,695 (23rd Sep 2019).
The Nifty index has now reached below its 100 and 200 DMA. However, 50-DMA, placed at 11087 is not yet breached and can act as a support.