Nifty 50 opened on a positive note with a gap-up of 85.75 pts (+0.44%). Following the appearance of a bullish candlestick pattern on the daily candle chart, the market had a robust opening today.
During the first few minutes of trading, it managed to fill half of the opening gap before rebounding. However, in the last couple of hours, the market remained range-bound.
Overall, Nifty 50 ended the day on a positive note with +0.56%.
- An Island Reversal pattern emerged in the hourly timeframe of the Nifty 50. A bottom island reversal is a bullish pattern signaling the end of the preceding downtrend, formed by a gap down, sideways movement, a gap up, and a breakout above the second gap.
- To confirm a trend reversal, it's crucial for the asset to exceed the day's high. Additionally, the gap should not be breached during any price declines in the upcoming sessions. Therefore, this pattern suggests a shift from a bearish to a potentially bullish market sentiment.
Today, there were no significant news events that influenced stock movements.
Under the most popular configuration, 'Back Up' ended the day with a loss of -2.29%, and 'Quick Short' with a gain of +1.13%.
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Coming back to report…
The highest CE OI is at 19600, and PE at 19500 levels. This means markets are expected to revolve around these levels in the upcoming session.
Levels Worth Monitoring Tomorrow
Keep a close eye on the gap, it is a critical level during price declines, if today's high is crossed we may see the index reach 19800 in the upcoming sessions, signaling a trend change.
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 making any investment decisions.
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