Daily Stock Market Report: December 08

The Nifty 50 opened on a positive note with a gap up of 32.95 points (+0.16%). The price tested yesterday’s high and surpassed it in a mere few minutes, reaching the 21000 level before turning around.

After that, the index was dragged down to the low of the last 2 days range, which again served as support. This further iterates that the index may continue to move sideways.

As the trading day concluded, the Nifty 50 was up 68.25 points, recording a gain of +0.33%.

Key Observations:

• The Nifty 50 reached a new high today, but the price remains confined within a range.
• A hammer candlestick pattern has emerged at support levels in the hourly timeframe, confirming that the bulls are not ready to give up. This suggests that the price may continue sideways movement in the upcoming session.

Spot Signals:

Today, there were no significant news events that influenced stock movements.

Quant Signals

Under the most popular configuration:

• ‘Quick Short’ recorded a loss of -0.37% today.
• On the other hand, 'Back Up' also ended the day in red with a loss of -2.73%.
• However, 'BTST' closed with an exuberant profit of 5.2%.

Broker Signals

Here is today's top position that closed and met its target:

• HOMEFIRST (+20.5% in 4 months)
  

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 20900 levels. This suggests that the markets are expected to revolve around these levels in the upcoming session.

Levels Worth Monitoring Tomorrow

Yet another narrow-ranged daily candle confirms that the momentum has worn off. However, the support level remains the same, around 19850 level.

The RSI has relieved from its overbought levels in the lower time frames. If the index surpasses 21000, intraday longs (scalping) can be considered. However, avoid carrying longs if you plan to enter now, as it doesn't make for a favourable risk-reward ratio.

On the other hand, if the 20850 level is broken, it may drag the index down to 20700 levels.

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.

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