Daily Stock Market Report: December 27
The recent upward movement appears to be losing momentum, as evident in the form of Bearish Divergence observed in the RSI Indicator.
Nifty 50 opened on a positive note with a gap up of 56.30 pts or +0.26%. The index embarked on an uptrend after opening, reaching a new all-time high. Later, despite a subsequent price reversal to near the opening level, bulls concluded the day even higher than the initial high made in the first half.
As the trading day wrapped up, Nifty 50 closed at 21654.75, with a gain of 213.40 pts or +1.00%.
Key Observations:
- As last week's report mentioned, Nifty 50 has finally tested the previous all-time high before the year-end.
- Until now, we have observed Bearish Divergences in the lower time frames. However, the most recent upward movement appears to be losing momentum, as evidenced by the bearish divergence observed in the RSI indicator on the daily time frame.
Spot Signals
Today, there were no significant news events that influenced stock movements.
Quant Signals
Under the most popular configuration:
- 'Quick Short' recorded a gain of +1.33% for the day.
- While '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:
- AARTIIND (+23% in a month)
- GAIL (+20.3% in 3 months)
- COCHINSHIP (+18.3% in 28 days)
All the remaining signals recommended by brokers are currently live.
Coming back to the report…
Data Points
The highest CE OI is 22000, and the PE is at 21500 levels. This suggests that the markets are expected to revolve around these levels in the upcoming session.
Levels Worth Monitoring Tomorrow
A Bearish Divergence on the daily time frame indicates that the upward movement is losing steam. It is not necessary to short the markets immediately. Instead, tightening the stop-loss and staying cautious as long as the trailing stop-loss hits would be an ideal strategy.
The immediate support for the upcoming session would be today's gap between 21450 and 21500.
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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