Daily Stock Market Report: January 31
If 21800 is crossed, it may encounter another resistance around the gap level, presenting a challenge to bulls.
Nifty 50 opened the day slightly negatively with a gap down of 34.85 points (-0.16%). Despite the initial dip, the index found support around the 21500 level mentioned in yesterday’s report. It swiftly reversed course and closed the day positively at 21735.70, gaining 203.60 points or +0.95%.
Key Observations
- The old resistance that broke has now turned into support, a phenomenon commonly known as a change in polarity in price action.
- Today’s rally failed to retest the 21800 level, but our outlook remains cautiously bullish as long as 21500 is held in the upcoming session.
- If the index turns around from the current market price, the setup would lean towards a sideways trajectory, with the price confined within a range.
Spot Signals
Below is the Top Mover from our Live Market Feed:
- NAZARA (+2.58%)
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Quant Signals
Under the most popular configuration:
- ‘Quick Short’ recorded a gain of +2.27% for the day.
- ‘Back Up’ closed negatively with a return of -0.36%.
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Broker Signals
Here is the today's top position that closed and met its target:
- PNCINFRA (+20.6% in 3 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
The immediate resistance for the upcoming session is around 21800 levels; on the other hand, 21500 - 21450 will act as important support.
As long as the support levels hold, we remain cautiously bullish while the index is about to retest the 21800 level.
If 21800 is crossed, it may encounter another resistance around the gap level, presenting a challenge to bulls.
If the support level is breached on the downside, we will no longer be bullish, and Nifty 50 will be dragged to the recent swing lows.
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.
