Daily Stock Market Report: December 12

Nifty 50 opened on a positive note with a gap up of 21.45 pts (+0.10%). In the initial minutes, there was yet another failed attempt to cross 21,000 before a turnaround. Later, the index was dragged down to the 20,850 level.

As the trading day wrapped up, the index concluded at 20,906.40, with a loss of 90.70 pts, or -0.43%.

Key Observations:

• After 10 sessions in the daily time frame, the Nifty 50 closed below the low of the previous candle.
• However, it continues to move within a range despite a quick fall in the last few hours. Yet, the support was held at the 20850 level, which was discussed in yesterday’s report.
• The index will resume its uptrend once the range is broken, and for now, the setup remains sideways to bullish.

Spot Signals

Below is the Top Mover from our Live Market Feed:

• THERMAX (+1.26%)
  

Quant Signals

Under the most popular configuration:

• ‘Quick Short’ ended the day in green with +0.84%, while
• On the other hand, 'Back Up' didn’t generate a signal today as it didn’t meet its quantitative metric.

Broker Signals

Here are today's top positions that closed and met its target:

• APTUS (+25.5% in 4 months)

• CENTURYPLY (+17.6% in 4 months)

• ULTRACEMCO (+14.9% in 3 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

The immediate support for tomorrow is at the 20850 level; if this level is breached, the index may be dragged to 20700 levels. On the other hand, the immediate resistance is at 21040 levels.

When the markets are stuck in a trading range, the ideal setup for traders is to buy at support, book at resistance and initiate short at resistance, buy back at support.

But the question here is whether this consolidation is reaccumulation or distribution in the short term. Let's observe and see which side the range is going to break.

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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