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

05 Dec , 2024 By : Debdeep Gupta

Nifty Trade Setup

The market was rangebound throughout the session, possibly due to caution ahead of the MPC's interest rate decision scheduled for December 6. However, it maintained an upward trajectory for the fourth consecutive day on December 4. Considering the index sustained above all key moving averages and the neckline of the Inverted Head and Shoulders pattern, an up-move towards 24,550 (immediate target) is possible, followed by 24,700-24,800, which is the crucial resistance zone. However, the index may take support at the 24,350-24,300 zone, as below this, 24,000 is the level to watch, according to experts.

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

1) Key Levels For The Nifty 50 (24,467)

Resistance based on pivot points: 24,548, 24,597, and 24,676

Support based on pivot points: 24,390, 24,341, and 24,262

Special Formation: The Nifty 50 formed a Doji-like candlestick pattern on the daily charts, indicating indecision between buyers and sellers after the recent sharp uptrend. The index maintained a higher highs-higher lows formation for the third consecutive session and is holding above all key moving averages. The momentum indicators RSI (Relative Strength Index at 55.9) and MACD (Moving Average Convergence Divergence) showed an upward bias.

2) Key Levels For The Bank Nifty (53,267)

Resistance based on pivot points: 53,381, 53,547, and 53,815

Support based on pivot points: 52,845, 52,679, and 52,411

Resistance based on Fibonacci retracement: 53,464, 54,465

Support based on Fibonacci retracement: 52,491, 51,257

Special Formation: The Bank Nifty reported a bullish candlestick pattern on the daily charts and traded near the upper end of the Bollinger Bands. The index sustained well above all key moving averages as well as above the upward-sloping resistance trendline, while the RSI (at 63.91) and MACD maintained an upward bias, which is a positive sign.

3) Nifty Call Options Data

According to the weekly options data, the maximum open interest remained at the 25,000 strike (with 1.55 crore contracts). This level can act as a key resistance level for the Nifty in the short term. It was followed by the 24,800 strike (1.13 crore contracts), and the 24,500 strike (1.02 crore contracts).

Maximum Call writing was observed at the 24,750 strike, which saw an addition of 27.97 lakh contracts, followed by the 24,550 and 24,600 strikes, which added 23.87 lakh and 21.96 lakh contracts, respectively, while the maximum Call unwinding was seen at the 24,400 strike, which shed 14.38 lakh contracts, followed by the 24,300 and 25,500 strikes, which shed 10.52 lakh and 11.56 lakh contracts, respectively.

4) Nifty Put Options Data

On the Put side, the 23,500 strike holds the maximum open interest (with 1.42 crore contracts), which can act as a key support level for the Nifty. It was followed by the 24,000 strike (1.28 crore contracts), and the 23,800 strike (1.21 crore contracts).

The maximum Put writing was placed at the 23,800 strike, which saw an addition of 29.63 lakh contracts, followed by the 23,900, and 24,500 strikes, with 24.36 lakh, and 22.91 lakh contracts added, respectively, while the maximum Put unwinding was seen at the 23,500 strike, which shed 12.87 lakh contracts, followed by the 24,300 and 24,100 strikes which shed 11.52 lakh and 9.87 lakh contracts, respectively.

5) Bank Nifty Call Options Data

According to the monthly options data, the maximum Call open interest was seen at the 54,000 strike, with 16.32 lakh contracts. This can act as a key resistance level for the index in the short term. It was followed by the 55,000 strike (15.12 lakh contracts) and the 53,000 strike (14.35 lakh contracts).

Maximum Call writing was visible at the 53,500 strike (with the addition of 1.67 lakh contracts), followed by the 54,000 strike (1.65 lakh contracts) and the 54,500 strike (1.52 lakh contracts), while the maximum Call unwinding was seen at the 52,500 strike, which shed 1.23 lakh contracts, followed by the 52,700 and 52,800 strikes, which shed 1.15 lakh and 1.05 lakh contracts, respectively.

6) Bank Nifty Put Options Data

On the Put side, the 52,000 strike holds the maximum open interest (with 16.7 lakh contracts), which can act as a key support level for the index. This was followed by the 52,500 strike (16.09 lakh contracts) and the 51,000 strike (14.55 lakh contracts).

The maximum Put writing was observed at the 53,000 strike (which added 3.32 lakh contracts), followed by the 53,500 strike (3.11 lakh contracts) and the 51,000 strike (2.69 lakh contracts), while the maximum Put unwinding was seen at the 55,000 strike, which shed 1.83 lakh contracts, followed by the 52,800 and 52,900 strikes, which shed 27,480 and 4,815 contracts, respectively.

7) Funds Flow (Rs crore)

8) Put-Call Ratio

The Nifty Put-Call ratio (PCR), which indicates the mood of the market, fell to 1.14 on December 4, from the 1.29 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

The India VIX, the volatility index, increased slightly but remained below the 15 mark, rising 0.54 percent to 14.45 from 14.37. Bulls need to be cautious if they climb decisively above the 15 level.

10) Long Build-up (65 Stocks)

A long build-up was seen in 65 stocks. An increase in open interest (OI) and price indicates a build-up of long positions.

11) Long Unwinding (43 Stocks)

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

12) Short Build-up (55 Stocks)

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

13) Short-Covering (65 Stocks)

65 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.