Daily Stock Market Report: December 04
Yet another surge in the markets recorded a new high, followed by a continuation pattern that we discussed last week
Nifty 50 opened on a positive note with a gap up of +334.05 points (+1.65%). Despite the positive opening, the index remained stagnant for the first few hours. Later, it crossed the high set at the opening and closed the day almost at its high at 20,686.80, reflecting a gain of 2.07%.
The major contribution today is from the following sectors, which include PSU Bank, Pvt Bank, Fin Service & PSE.
Key Observations:
- Yet another surge in the markets recorded a new high, followed by a continuation pattern that we discussed last week
- The gap of almost 200 pts that formed today will serve as a support in the upcoming days.
- Any dips to these levels will serve as an ideal point to add longs to your existing positions.
Spot Signals
Below are the Top Movers from our Live Market Feed:
- AGSTRA (-6.29%)
- BCLIND (+4.96%)
Quant Signals
Under the most popular configuration:
- ‘Quick Short’ recorded a loss of -2.7% today.
- On the other hand, 'Back Up' didn't generate a signal today as it did not meet its quantitative metrics.
Broker Signals
Here are today's top positions that closed and met their targets:
- HINDPETRO (+28.5% in 4 months)
- BRIGADE (+18.1% in 18 days)
- BIRLACORPN (+16.8% in 3 months)
All the remaining signals recommended by brokers are currently live.
Coming back to the report…
Data Points
The highest CE OI is 21000, and the PE is at 20500 levels. This suggests that the markets are expected to revolve around these levels in the upcoming session.
Levels Worth Monitoring Tomorrow
Consider setting a stop loss around the 20250 levels, just below today's gap, if you currently hold long positions.
In addition, adding longs at the current market levels may not favor a favorable risk-reward ratio. Instead, contemplate adding longs when the index corrects.
Disclaimer: The opinions expressed in this blog are personal views and should not be considered financial advice. Please do your own research and consult with a professional before you make any investment decisions.
