Daily Market Report- 29th May

Daily Market Report- 29th May

Last Friday, the Nifty broke out of its consolidation, ending the day at its highs.

The momentum continued as Nifty started the day on a positive note, with a significant gap up of 119.80 points (+0.65%), and Bank Nifty also commenced with a favourable start of 258.80 points (+0.59%), where it remained steady and unchanged throughout the trading session.

Stock 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, it may be an opportunity you are currently missing out on.

Unlock the power of mean reversion with our app's models: Quick Short and Back Up

Visit the respective model details page on the app to delve into more specifics.

Here’s how both the models performed for the day.

Quick Short:

Back Up:

Models NAV:

Nifty’s Technical & Data Points:

Technical Points:

  • In an upward trend, gaps often act as support. The lower end of the gap is at 18500, closer to the previous swing highs at 18450. These levels (18500-18450) could act as support in the upcoming session.
  • The anticipated upward movement is likely to encounter a pause at the previous highs around the levels of 18700 to 18800.

Data Points:

  • The highest OI of CE is at 18800, and PE is at 18300.
  • There is an increase in OI in ATM levels of 18600 in both PE & CE, the CE OI is slightly higher than PE, showing slight bearish sentiments for tomorrow.

Levels worth monitoring tomorrow:

If 18600 PE starts unwinding, we can expect a correction tomorrow. However, the correction is expected to halt at 18500 – 18450 levels. As discussed, these levels coincide with both data and technical support.

The overall market sentiment is bullish on a daily time frame, and any potential corrections towards the range of 18500 to 18450 might present a buying opportunity at the moment.

These were some of the pointers based on which we feel that tomorrow is an important day for Index to be able to continue the upward momentum. We would love to know your thoughts. Feel free to share your opinions in the section below.

Will Nifty breach its ATH (All Time High)  this month?

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.