Daily Stock Market Report: October 10
Nifty 50 broke out of an inverted head and shoulder pattern. This breakout gives a minimum target of 330 points from the breakout level.
Nifty 50 opened positively for the day with a gap-up of 53.25 pts (0.27%). The index exhibited a clear upward trend right from the start, resulting in a robust closing with a gain of +0.91%.
The driving forces behind this rally were primarily the Realty, PSU Banks, and Metal sectors, which recorded gains of 4.01%, 2.08% & 2.05% respectively.
Here is the intraday movement of the Nifty50 for your reference:
Key Observations:
- In the hourly chart, Nifty 50 broke out of an inverted head and shoulder pattern. This breakout gives a minimum target of 330 points from the breakout level.
- In the event of a correction, It's crucial to keep a close eye on the neckline, it is expected to act as a significant support, potentially allowing for a continuation of the upward movement.
Spot Signals
Below is the Top Mover from our Live Market Feed:
- GENUSPOWER
Quant Signals
Under the most popular configuration, 'Back Up' didn’t generate a signal today as it didn’t meet its quantitative metrics. However, 'Quick Short' closed with a significant gain of +2.10%.
Broker Signals
Below is the position that was closed:
- PRESTIGE (+25.8% in 2 months)
Coming back to the report…
Data Points
The highest CE OI is at 20000, and the PE is at 19600 levels. This suggests that the markets are expected to revolve around these levels in the upcoming session.
Levels Worth Monitoring Tomorrow
Given the breakout in the head and shoulder pattern, the index appears to be bullish. If there's a price correction, the neckline could act as a support. This aligns with the data, as 19600 has the highest Open Interest on the put option side, nearly matching the neckline level.
As per the classic textbook analysis, the breakout from the head and shoulders pattern suggests a potential target of up to 19975 levels. We may witness Nifty 50 reach this level in the upcoming days.
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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