Podcast | Stock picks of the day: Nifty likely to see a bounceback towards 11,050 –11,150 levels

If Nifty has to regain any strength, the bank index needs to step up. Hence, one needs to closely watch how banking conglomerates perform in the coming week

The market witnessed selling pressure, which pushed the Nifty below the 10,650 marks on August 23. Fortunately, strong buying emerged at lower levels in the following hour and thereafter, the index saw a V-shaped recovery to not only trim all losses but also to enter the positive territory and reclaim the 10,800 marks

We are trading in an extremely oversold zone and reached crucial February lows around 10,600. Technically, we can see the formation of ‘Bullish Piercing’ pattern on the daily chart (in Nifty).

The said pattern will show its significance once the index manages to sustain above 10,900. In this scenario, we can expect further recovery towards 11,050–11,150.

If Nifty has to regain any strength, the bank index needs to step up. Hence, one needs to closely watch how banking conglomerates perform in this week.

For Nifty, the support can be seen around 10,728–10,637 levels. In case of a breach, from these crucial supports, we can see an extended correction in the market.

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