Daily Stock Market Report: December 06

Nifty 50 opened on a positive note with a gap up of +95.65 pts (+0.46%). However, the price struggled to surpass the highs set in the first few minutes, ultimately pulling the index back to yesterday’s high.

After finding support at yesterday’s high, the price reversed direction to retest the morning highs. Ultimately, the day closed at 20,937.70, an upward move of 82.60 pts or a gain of +0.40%.

The setup of buying on dips, which we've mentioned in our latest reports, proved highly effective in the last few days.

Key Observations:

• Nifty 50 closed in the red after 6 consecutive green days, and today's movement was more of a sideways action, as explained in yesterday’s detailed report.
• RSI, a momentum indicator, is forming multiple bearish divergences in the hourly time frame, an indication that the steam is running out of the current upmove.

Spot Signals:

Below are the Top Movers from our Live Market Feed:

• ANGELONE (+6.94%)
  

• SNOWMAN (+2.15%)
  

Quant Signals

Under the most popular configuration:

• ‘Quick Short’ ended the day in green with +1.62% 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:

• BPCL (+31.7% in a month)

• BIRLACORPN (+19.6% in 3 months)
  

• ACC (+16% in a month)
  

All the remaining signals recommended by brokers are currently live.

However, a popular broker has identified a new opportunity with the potential for a double-digit gain. Check it out on the app.

Coming back to the report…

Data Points

The highest CE OI is 21000, and the PE is at 20800 levels. This suggests that the markets are expected to revolve around these levels in the upcoming session.

Levels Worth Monitoring Tomorrow

The immediate support lies at today's low, while conversely, resistance is positioned at the 21000 level.

The daily candles have been narrowing over the past 3 days, including today, which suggests that the momentum is slowing down. This trend is also reflected in the RSI, which is flattening out around 80 levels. It indicates that the index may move sideways or correct in the upcoming session to relieve the overbought conditions.

If you are a short-term trader holding long positions, consider tightening your stop-loss for the upcoming session.

Will Nifty 50 reach 21000 in tomorrow's expiry?

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.

Investmint app brings you the latest stock market updates. Ensure you capture today's opportunities by tapping below.