Daily Stock Market Report: February 08
Nifty has been struggling to close above 22000 for a couple of days, failing to sustain momentum above this level.
Nifty 50 opened on a positive note with a gap up of 79.15 pts (+0.36%). Despite the positive opening, the index was dragged lower from the 22000 level, a psychological level.
As the trading day wrapped up, Nifty 50 concluded at 21717.95, with a loss of 212.55 pts or -0.97%.
Key Observations
- Nifty 50 has been struggling to close above 22000 for a couple of days, failing to sustain momentum above this level.
- Looking at the daily time frame, we notice significant reversals or bearish patterns aligning with the 22000 level: an island reversal in January, followed by a Shooting Star pattern last week.
- Both of these reversal patterns coincide with the psychological level at 22000, posing a major hurdle for the bulls to overcome.
- This comes with RSI confirmation, a momentum indicator; failing to cross above 60 indicates that an uptrend has come to an end for now on the daily timeframe.
- Until we see a decisive close above 22000, we maintain a mildly bearish to sideways stance.
Spot Signals
Below is the Top Mover from our Live Market Feed:
- DYNAMATECH (+1.27%)
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Quant Signals
Under the most popular configuration:
- Both ‘Quick Short’ and ‘Back Up’ recorded a profit of +2.43% & +0.71% respectively.
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Broker Signals
Here is the today's top position that closed and met its target:
- ITDCEM (+25.9% in 2 months)
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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
Nifty 50 has breached the support level at 21850 in a lower timeframe, signaling a shift towards a bearish stance for the upcoming session. Reclaiming this level would likely lead to a retest of 22000.
Conversely, 21650 serves as an immediate support level in the upcoming session. A breach of this level could pave the way for a move towards 21450.
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.
