Daily Stock Market Report: December 20
We have been clearly witnessing rejection at the highs for the last 2 days, which has finally taken the form of an engulfing pattern today.
Nifty 50 opened on a positive note with a gap up of 90.40 pts (+0.42%). Despite the rally in the initial few minutes, the price was capped at around 21600 levels and it turned around to bleed throughout the day.
The index was dragged around 500 points down from its highs and concluded the day at 21150.15 with a loss of -1.41%.
Key Observations:
- The brutal fall in the market today has formed a Bearish Engulfing Pattern in the daily time frame of Nifty 50. This pattern suggests a potential reversal of the existing uptrend, indicating that sellers have gained control and are overpowering the buyers.
- We have been witnessing rejection at the highs for the last 2 days, which has finally taken the form of an engulfing pattern today. This pattern has engulfed almost 4 preceding candles, explaining the bearishness in the short term.
Spot Signals:
Below is the Top Mover from our Live Market Feed:
- TRIL (-6.29%)
Quant Signals
Under the most popular configuration:
- 'Quick Short' recorded a loss of -3.63%.
- 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:
- OIL (+24.8% in 4 months)
- POONAWALLA (+19.5% in a month)
All the remaining signals recommended by brokers are currently live.
Coming back to the report…
Data Points
The highest CE OI is 21500, and the PE is at 21000 levels. This suggests that the markets are expected to revolve around these levels in the upcoming session.
Levels Worth Monitoring Tomorrow
Today’s fall has halted at one of the previous gaps around the 21100 levels. The gap is expected to continue to act as support in the upcoming session.
If the price rebounds from the current market level, the 21350 level is expected to act as resistance in the short term.
On the other hand, if the support level is breached, the index may test the preceding gap around the 20500 level in the upcoming sessions.
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.
Checkout more interesting reads on our blog
Team Investmint
