Nifty 50 opened barely unchanged with a marginal gap-up of 4.70 pts (0.02%). However, it experienced a significant decline throughout the trading session, right from the opening bell to the market close.
By the end of the day, the index concluded with a substantial loss of -159.60 pts, marking a decline of -0.83%.
- Today, the Nifty 50 breached the support level, which was around 19200. This development warrants a cautious approach in the upcoming days.
- While most market participants are adopting a bearish stance due to the index breaking below support, our perspective differs. We are positioning ourselves for a potential sideways movement or a rebound in the short term.
- The Nifty 50's Relative Strength Index (RSI) has reached oversold levels, standing at 32 on the daily timeframe and 25 on the hourly timeframe. This leads us to anticipate either a rebound or a period of consolidation at the current levels.
Below is the Top Mover from our Live Market Feed:
- NIRAJ (-7.08%)
Under the most popular configuration:
- Yet again, 'Quick Short' closed with an impressive gain of +4.25%.
- On the other hand, the long-only model, 'Back Up', has outperformed the index today and closed with a gain of +2.07%.
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Coming back to the report…
The highest CE OI is 19500, and the PE is at 19000 levels. This suggests that the markets are expected to revolve around these in the upcoming session.
Levels Worth Monitoring Tomorrow
The Nifty 50's Relative Strength Index (RSI) has dipped into oversold territory, suggesting a less likelihood of further downward movement.
If CE writers begin to unwind their positions, we could witness a significant up move.
We can expect the range between 19350 and 19250 to act as a resistance zone in the upcoming trading sessions. Conversely, the next immediate support level is at 18900.
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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