Stock picks of the day: Remain bullish on Nifty with stop loss of 11,000

Nifty50 erased most of the intraday gains during the last one hour of the trade and finally shut the shop with the gain of 36 points at 11,341 levels.

The primary trend of the Nifty is positive as the index is trading above its 200-Day SMA. Oscillators and Momentum Indicators like RSI and MACD have been showing strength on the weekly charts for Nifty as well as Bank Nifty.

In the derivatives, we have seen Put writing at 11,000-11,000 strike prices which indicates that the index is likely to find strong support around 11,000 levels.

Unless Nifty closes below it, the trend would be considered bullish for the markets. On the upside, 11400 level is likely to act as an immediate resistance where Calls have been written.

The Nifty Mid-cap and Small-cap indices are underperforming the market as they are down by 3 percent and 3.5 percent respectively for the month of October till now as compared to 1 percent fall in the Nifty50.

Considering the technical and derivatives evidence discussed above, we believe that the recent fall in the market from the highs of 11,695 (High made on 23-Sept) is the running correction in the overall uptrend.