Stock picks of the day: Nifty likely to consolidate till May 23rd; Small & midcaps eyed

Nifty50 and Bank Nifty ended at all-time closing highs. Huge short covering was seen in the derivative markets post Exit poll results announced on 19th May evening.

Gap-up opening on Monday, i.e. 20th May left the unfilled gap up of 165 points between 11426 and 11591 in Nifty. This range has become strong support in the Nifty for the coming days. 

After correction of 748 points from the highs of 11,856 (18th April 2019 High) to 11,108 (14th May 2019 Low), the Nifty has recouped all the losses in the span of last 3 sessions.

Till last week, Nifty Midcap and Smallcap indices were falling for the past 5-7 weeks respectively. There were many stocks, which turned extremely oversold on the short to medium term charts.