Stock picks of the day | Remain long on Nifty with stop loss below 10,750

After four months of range-bound trading, the Nifty has finally broken out from an Ascending Triangle pattern on the daily chart and also sustained above the same for the second consecutive session which is a very positive development.

Projections of the breakout indicate that Nifty has the potential to move higher towards the 11600 levels. Every long position should be protected with a stop loss below 10,750 levels. 

Going forward, if Nifty manages to hold above the 11050-11100 zone convincingly, it could trigger the mid-cap and small-cap stocks to play catch up in the near-term.

Bank Nifty, on the other hand, has also rallied sharply and has now reached the crucial resistance zone of 27700. A break above this level could lead to a fresh breakout for the index on the daily chart. Important support is now seen around the 27000 levels.