Daily Stock Market Report: October 26
Given the index's current overextension, it needs a pause, either a sideways or a rebound to continue the trend. Read on to learn more
Nifty 50 opened negatively with a gap down of -94.90 pts (-0.50%). The index witnessed a sharp fall in the initial hours, after which the index settled into a steady trading range for the rest of the day.
Nevertheless, what stands out is that this marks the third consecutive substantial decline in the index, causing it to reach the 18861 level at the closing bell, ultimately ending the day with a loss of -1.36%.
Key Observations:
- The Nifty 50 is currently at two critical levels. First, there's the long-term support derived from previous highs, and second, it's hovering around the 200-day Exponential Moving Average (EMA), often referred to as the 'Mother of all Moving Averages'
- Both of these support levels are of utmost importance because they are long-term in nature and the index is expected to take a breather here.
- Given the index's current overextension, it needs a pause, either a sideways or a rebound to continue the trend. Nevertheless, the setup still leans towards selling on rallies.
Spot Signals
Below is the Top Mover from our Live Market Feed:
- AWHCL (+4.92%)
Let's take a look at how the stock performed while the index was bleeding today.
Quant Signals
Under the most popular configuration:
- ‘Quick Short’ closed with a loss of -6.52%.
- While ‘Back Up’ ended the day in green with +0.48%.
Broker Signals
All the signals recommended by the brokers are currently live.
However, popular brokers have identified new opportunities with the potential for a double-digit gain. Click here to explore the signal.
Coming back to the report…
Data Points
The highest CE OI is 19000, and the PE is at 18800 levels. This suggests that the markets are expected to revolve around these in the upcoming session.
Levels Worth Monitoring Tomorrow
RSI is showing multiple bullish divergences in the lower time frames and it is extremely oversold. This shows that the selling pressure is weakening, hinting at a potential rebound in the upcoming sessions.
The next immediate resistance to watch out for is at 19100-19050 levels for the upcoming session.
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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