Daily Market Report- 1st June

Indian stock markets opened with a gap but soon gave up the gains and closed in the red on the weekly expiry. Although the price action indicates a bullish sentiment, the immediate support levels are important to watch in the short term.

Daily Market Report- 1st June

In a significant market development yesterday, the trading range was decisively broken, and the markets found stability at the 18480 levels. A clear signal emerged by surpassing the lows on the daily timeframe, confirming the prevailing bearish sentiments for the short term.

The Nifty witnessed a significant gap opening of 45 points (0.24%), while BankNifty started with a flat opening with a modest increase of 43.90 points (0.1%).

As discussed in yesterday's market review, Nifty started the day with a downward movement and encountered a pause as it reached 18450 levels, a level highlighted in yesterday’s report. This phenomenon is called “Change in Polarity," wherein the former resistance becomes a support level as the uptrend continues to unfold.

Stocks and more:

Stocks that opened today with significant Gap ups & downs are given below:

After significant gaps, prices typically exhibit a tendency to revert back to their mean. If you are interested in profiting from this mean reversion behaviour, we have multiple data-backed strategies that provide entry and exit alerts on stocks that fit this criterion. You can visit the respective model details page on the app to delve into more specifics.

Talking about mean reversion strategies, Quick Short and Back Up are two models which work on this strategy, ended the day with a gain of +0.5% and -0.015 respectively.

Quick Short:

Back Up:

Models NAV:

Nifty’s Technicals & Data Points:

Technical Points:

  1. A bullish signal emerged in the Nifty 50's recent hourly candle, a "Hammer" pattern that manifested at the crucial support level of 18450. If the 18450 - 18400 levels are respected, we expect the market to make an All-time high soon.
  2. Should the market manage to break below the range of 18450 and 18400 levels, we expect it to head lower towards 18200 levels.

Data Points:

  1. For the 8th June expiry, the highest OI of CE is at 18600, and PE is at 18500. It is anticipated that OI shifts will commence in the upcoming week.
  2. At the 18500 levels, an equal amount of CE and PE writing is evident. Any notable unwinding observed at these levels has the potential to pave the path towards further market movement.

Levels worth monitoring tomorrow:

We expect the market to adhere to the support levels within the range of 18450-18400. Nifty's price action indicates a bullish sentiment at the moment, as the support levels remain resilient. Additionally, the OI data suggests a sideways trend, with OI shifts anticipated in the forthcoming week. Our outlook remains bullish as long as the mentioned support levels hold during the upcoming session.

We would love to know your thoughts on our daily market reports. Feel free to share your opinions and suggestions in the section below.

Disclaimer: The opinions expressed in this section are personal views and should not be considered financial advice. Please do your own research and consult with a professional before making any investment decisions.