Daily Stock Market Report: December 18
A Bearish Harami pattern has emerged in the daily time frame, indicating that the buying pressure that was driving the market higher may be weakening.
Nifty 50 opened on a negative note with a gap down of -21.85 pts (-0.1%). However, the index was confined within a range throughout the day.
As the trading day came to an end, Nifty was down -38 pts or -0.18%.
Key Observations
- A Bearish Harami pattern has emerged in the daily time frame, indicating that the buying pressure that was driving the market higher may be weakening.
- This pattern warrants a potential signal that the uptrend could be losing steam, and there might be a reversal or at least a pause in the upward movement.
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 -0.07%.
- 'Back Up' ended the day in green with a gain of +6.40%.
Broker Signals
Here are today's top positions that closed and met its target:
- AMBUJACEM (+25.6% in a month)
- NTPC (+25.4% in 2 months)
- GAIL (+25.10% 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 21500, and the PE is at 21300 levels. This suggests that the markets are expected to revolve around these levels in the upcoming session.
Levels Worth Monitoring Tomorrow
While intraday longs (scalping) can be considered as the RSI has relieved from its overbought levels in the lower time frames, it is advisable to avoid carrying longs if you plan to enter now, as it doesn't make for a favourable risk-reward ratio.
It is highly recommended to tighten the stop-loss if you are holding long positions. Additionally, if the low of today’s candle is breached, we may expect the index to drag to 21200 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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Team Investmint
