1668: Stock picks of the day: Sit tight! Nifty Midcap Index has given a breakout on daily charts
- Publication Date |
- Sep 12, 2019
- Episode Duration |
A recent price progression in the benchmark index, Nifty50, has given a downward falling trendline breakout, which is made from joining a high of 5th July on the daily interval chart.
Since the past couple of days, the Nifty pack has managed to close above the 11,000 mark, which is further supported by a positive market breadth.
The index is trading above all its crucial short term moving averages such as 20-day moving average (DMA), 5-day exponential moving average (EMA) and 13 EMA which is positive sign for prices.
Currently, the Nifty50 pack is trading in the band of 50 and 100-EMA which is placed at 11,200 (50-EMA) and 10,800 (100-EMA) on the weekly timeline charts.
The Nifty Midcap Index has given a breakout from the bullish inverted head and shoulder pattern on the daily charts, while Nifty Smallcap index is on the verge of developing the same.
In case Nifty penetrate below 10,800 and sustain there for a couple of days on a closing basis, the selling pressure is likely to get extended towards 11,640-11,500 levels which cannot be ruled out.
However, any big move on the higher side should be expected if Nifty50 closes above 11,200 levels on a sustained basis.