Daily Stock Market Report: December 21
A climax in the Nifty 50 was observed in the 5-minute time frame. Read the full report to find out more.
Nifty 50 opened negatively for the day with a gap down of -116.20 pts or -0.55%. The index marked the low for the day in a minute after opening and rebounded.
As the trading day wrapped up, the Nifty 50 concluded at 21280.95, with a gain of 130.80 pts or 0.62%.
Key Observations:
- Nifty 50 bounced off from the lows of the gap discussed in yesterday’s report. The gap will continue to act as support in the upcoming sessions.
- On the other hand, 21350 is expected to act as resistance in the short term for the upcoming session.
Spot Signals
Below is the Top Mover from our Live Market Feed:
- AMIORG (+1.95%)
Quant Signals
Under the most popular configuration:
- 'Quick Short' recorded a loss of -0.36%.
- ‘Back Up’ ended the day in green with a gain of +2.26%.
Broker Signals
Here are today's top positions that closed and met its target:
- ULTRACEMCO (+18.7% in 2 months)
- EQUITASBNK (+16.1% in 4 months)
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
Yesterday’s rapid decline appears more like a shake-out, a phenomenon that occurred several times in the past during 2020 and 2021.
If the Nifty 50 surpasses 21350, we can anticipate the index to test the all-time high before the year-end.
On the other hand, the immediate support is at the 20950 level. If this support level is breached, the index may be dragged to 20750.
Did You Know?
As the market opened today, the first 5-minute candle closed with exuberant volumes that were far greater than yesterday’s quick fall. The volume was accompanied by a narrow-ranged candle, and this pattern is called a Selling Climax, which typically occurs after a significant decline.
This narrow-ranged candle with greater volumes explains that the selling pressure was absorbed by the bulls, resulting in the exhaustion of the selling pressure.
We often forget that the patterns are fractal in nature.
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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