Daily Stock Market Report: October 16
Although the Nifty 50 had a flat opening, it faces challenges in surpassing the 19,800 level.
Nifty 50 opened barely unchanged with a gap down of -13.80 pts (-0.07%). Despite the flat opening, the index rebounded by nearly 80 points from its opening level, then traded sideways after reaching its daily high.
At the end of the closing bell, Nifty 50 closed with -0.10%.
Key Observations
- Although the Nifty 50 had a flat opening, it faces challenges in surpassing the 19,800 level. In the hourly chart, most candles closed with long upper wicks, indicating bearishness and a lack of momentum from the bulls.
- Also, It's important to monitor the support level at 19,600. If this level is breached, it could signal a potential failure of the Head and Shoulders (H&S) pattern. But here is the silver lining, in such a scenario, a failed buy position could present an opportunity for a fantastic sell position.
Spot Signals
Below are the Top Movers from our Live Market Feed:
- KPIL (+4.84%)
2. JKIL (+3.03%)
Quant Signals
Under the most popular configuration:
- ‘Quick Short’ closed with a significant gain of +4.05%,
- ‘Back Up’ ended with a loss of -0.69%.
Broker Signals
All the signals recommended by the brokers are currently live.
However, A popular broker has identified a new opportunity with the potential for a +37.2% upside. Click here to explore the signal.
Coming back to the report…
Data Points
The highest CE OI is 19,800, and the PE is at 19,700 levels. This suggests that the markets are expected to revolve around these in the upcoming session.
Levels Worth Monitoring Tomorrow
Based on the data, both 19,800 CE and 19,700 PE are equally building their positions. This suggests the possibility of the index trading within this range. However, if either of these strike prices unwind their position, it could lead to a significant movement in the market.
It's advisable to keep an eye on the 19,600 support levels in the upcoming sessions, as it plays a crucial role in the Head and Shoulders (H&S) pattern.
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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