Stock picks of the day: Investors should remain cautious in the metals space
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The market extended its losing streak for the seven consecutive sessions, once again, led by index heavyweight Reliance Industries Ltd. The Nifty broke below the 50-DEMA but managed to find support at the 100-DEMA which is around the 11250 area.
The daily chart analysis indicates that the Nifty has formed a ‘Hammer’ kind of a candlestick pattern and a close above the 11400 mark would confirm that a short-term recovery is on the cards.
The Bank Nifty formed a Doji kind of a candlestick pattern indicating a recovery in the index. The near-term resistance is now seen around the 50-DEMA of 29300 zone for the Bank Nifty.
The Metals index has been weak for some time now and is also on the verge of negating inverse head and shoulder pattern which could further dent the metals stocks. It would be prudent to remain cautious about the metals space in the near term.