Trade setup for Thursday: Top 15 things to know before the opening bell- Grow Mudra

Trade setup for Thursday: Top 15 things to know before the opening bell

28 Nov , 2024 By : Debdeep Gupta

Here are 15 data points we have collated to help you spot profitable trades:

1) Key Levels For The Nifty 50 (24,275)

Resistance based on pivot points: 24,338, 24,388, and 24,467

Support based on pivot points: 24,179, 24,129, and 24,050

Special Formation: The Nifty 50 formed a bullish candlestick pattern with upper and lower shadows on the daily charts, indicating rangebound movement and volatility. The 100-day EMA (Exponential Moving Average) remains a key hurdle for the index for the third straight session, although it decisively traded above the 10-day and 20-day EMAs. There is an upward bias in the momentum indicator RSI, which is trading in the upper band at the 52 level. Additionally, the index has sustained in the upper band of the Bollinger Bands, which is a positive sign.

2) Key Levels For The Bank Nifty (52,302)

Resistance based on pivot points: 52,418, 52,518, and 52,680

Support based on pivot points: 52,093, 51,993, and 51,830

Resistance based on Fibonacci retracement: 52,686, 53,469

Support based on Fibonacci retracement: 51,254, 50,280

Special Formation: The Bank Nifty also formed a bullish candlestick pattern with upper and lower shadows on the daily timeframe, indicating volatility and rangebound trade. The index has sustained not only above all key moving averages but also above the 50 percent Fibonacci retracement (from the record high to the November low), which is a positive sign. The RSI at 57 also shows a positive bias.

3) Nifty Call Options Data

According to the monthly options data, the 25,000 strike holds the maximum open interest (with 1.21 crore contracts). This level can act as a key resistance level for the Nifty in the short term. It was followed by the 24,500 strike (98.46 lakh contracts), and the 24,300 strike (74.92 lakh contracts).

Maximum Call writing was observed at the 24,600 strike, which saw an addition of 11.23 lakh contracts, followed by the 24,800 and 24,550 strikes, which added 8.33 lakh and 7.17 lakh contracts, respectively, while the maximum Call unwinding was seen at the 24,200 strike, which shed 11.69 lakh contracts, followed by the 24,900 and 24,000 strikes, which shed 8.52 lakh and 6.09 lakh contracts, respectively.

4) Nifty Put Options Data

On the Put side, the maximum open interest was seen at the 24,000 strike (with 95.45 lakh contracts), which can act as a key support level for the Nifty. It was followed by the 23,500 strike (95.09 lakh contracts), and the 24,200 strike (70.73 lakh contracts).

The maximum Put writing was placed at the 24,000 strike, which saw an addition of 30.6 lakh contracts, followed by the 24,200, and 24,100 strikes, with 26.4 lakh, and 16.66 lakh contracts added, respectively, while the maximum Put unwinding was seen at the 24,800 strike, which shed 2.15 lakh contracts, followed by the 24,900 and 23,450 strikes which shed 1.88 lakh and 1.49 lakh contracts, respectively.

5) Bank Nifty Call Options Data

According to the monthly options data, the 54,000 strike holds the maximum Call open interest, with 10.67 lakh contracts. This can act as a key resistance level for the index in the short term. It was followed by the 53,000 strike (8.38 lakh contracts) and the 52,500 strike (7.62 lakh contracts).

Maximum Call writing was visible at the 54,000 strike (with the addition of 5.61 lakh contracts), followed by the 52,500 strike (4.23 lakh contracts) and the 53,000 strike (3.37 lakh contracts), while the maximum Call unwinding was seen at the 51,500 strike, which shed 30,240 contracts, followed by the 50,500 and 51,200 strikes, which shed 3,165 and 885 contracts, respectively.

6) Bank Nifty Put Options Data

On the Put side, the maximum open interest was seen at the 52,000 strikes (with 8.47 lakh contracts), which can act as a key support level for the index. This was followed by the 51,000 strike (7.73 lakh contracts) and the 50,500 strike (7.16 lakh contracts).

The maximum Put writing was observed at the 50,500 strike (which added 5 lakh contracts), followed by the 52,500 strike (3.32 lakh contracts) and the 52,000 strike (3.14 lakh contracts), while there was hardly any Put unwinding seen.

7) Funds Flow (Rs crore)

8) Put-Call Ratio

The Nifty Put-Call ratio (PCR), which indicates the mood of the market, rose to 1.12 on November 27, from 1.04 level in the previous session.

The increasing PCR, or being higher than 0.7 or surpassing 1, means traders are selling more Put options than Call options, which generally indicates the firming up of a bullish sentiment in the market. If the ratio falls below 0.7 or moves towards 0.5, then it indicates selling in Calls is higher than selling in Puts, reflecting a bearish mood in the market.

9) India VIX

Volatility has dropped but remains in higher zones. The India VIX, the fear index, declined by 4.44 percent to the 14.63 level. Bulls may gain strength if it drops decisively below the 14 mark.

10) Long Build-up (48 Stocks)

A long build-up was seen in 48 stocks. An increase in open interest (OI) and price indicates a build-up of long positions.

11) Long Unwinding (31 Stocks)

31 stocks saw a decline in open interest (OI) along with a fall in price, indicating long unwinding.

12) Short Build-up (41 Stocks)

41 stocks saw an increase in OI along with a fall in price, indicating a build-up of short positions.

13) Short-Covering (62 Stocks)

62 stocks saw short-covering, meaning a decrease in OI, along with a price increase.

14) High Delivery Trades

Here are the stocks that saw a high share of delivery trades. A high share of delivery reflects investing (as opposed to trading) interest in a stock.