The market has broken the support around 22,800 (which coincides with the previous record high of May 3 as well as the 23.60 percent Fibonacci retracement level from the current month's low to the record high) on the Nifty 50 after a gap-down opening and closed lower for four days in a row on May 29. Market participants may be more cautious ahead of the expiry of May derivative contracts on Thursday, and the exit polls scheduled immediately after the seventh phase of the Lok Sabha election on June 1.

According to experts, the next support for the index lies around 22,600, which coincides with the 38.2 percent Fibonacci retracement level, followed by 22,500, coinciding with the 20-day SMA or the mid of the Bollinger Band. As long as the index holds these support lines, the possibility of a rebound seems high in the coming sessions, with crucial resistance at the 23,000 mark.

The Nifty 50 declined 183.5 points, or 0.80 percent, to close at 22,705, reporting a bearish candlestick pattern on the daily charts with an upper shadow.

Meanwhile, the Bank Nifty also saw a gap-down opening and lost a further 641 points, or 1.3 percent, to 48,501, forming a bearish candlestick pattern on the daily timeframe. Experts expect the possibility of a bounce back in the index, as after the recent fall, it reached very close to the 20-day SMA (Simple Moving Average) as well as the 50 percent Fibonacci retracement level placed around the 48,300 mark. However, if it fails to rebound, the correction may extend to the 48,000 mark.

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

1) Key Levels For The Nifty 50

Resistance based on pivot points: 22,792, 22,825, and 22,879

Support based on pivot points: 22,685, 22,652, and 22,598

Special Formation: The Nifty 50 continued the lower highs-lower lows formation for the second consecutive session, with the momentum indicator Relative Strength Index (RSI) showing a negative crossover on the daily as well as weekly charts. Despite this, the index still held above all key moving averages.

2) Key Levels For The Bank Nifty

Resistance based on pivot points: 48,879, 49,026, and 49,263

Support based on pivot points: 48,405, 48,258, and 48,021

Resistance based on Fibonacci retracement: 49,332, 49,975

Support based on Fibonacci retracement: 48,332, 48,018

3) Nifty Call Options Data

According to the monthly options data, the maximum Call open interest was seen at 23,500 strikes. This level can act as a key resistance level for the Nifty in the short term. It was followed by the 23,000 strike and the 24,000 strike.

Maximum Call writing was observed at the 22,800 strikes, followed by the 22,900 and 23,000 strikes, while the maximum Call unwinding was visible at the 23,800 strikes, followed by the 23,700 and 24,000 strikes.

4) Nifty Put Options Data

On the Put side, the 22,000 strike holds the maximum open interest, which can act as a key support level for the Nifty. It was followed by the 22,500 strike and then the 22,300 strike.

The maximum Put writing was observed at the 22,300 strikes, followed by the 22,000 and 22,200 strikes, while the Put unwinding was observed at the 23,000 strikes, followed by the 22,900 and 21,500 strikes.

5) Bank Nifty Call Options Data

According to the monthly options data, the maximum Call open interest was seen at the 48,500 strike. This can act as a crucial level for the index in the short term. It was followed by the 48,600 strike and the 48,700 strike.

Maximum Call writing was visible at the 48,500 strikes, followed by the 48,600 and 48,700 strikes, while the maximum Call unwinding was observed at the 49,500 strikes, followed by the 49,300 and 48,000 strikes.

6) Bank Nifty Put Options Data

On the Put side, the 48,500 strike holds the maximum open interest, which can act as a crucial level for the index. This was followed by the 48,400 strike and then the 48,000 strike.

The maximum Put writing was observed at the 48,500 strikes, followed by the 48,400 and 48,600 strikes, while the 49,000 strikes witnessed the maximum Put unwinding, followed by the 48,000 and 49,200 strikes.

8) Put-Call Ratio

The Nifty Put-Call ratio (PCR), which indicates the market's mood, declined further to 0.79 on May 29 from 0.94 levels 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, it indicates selling in Calls is higher than selling in Puts, reflecting a bearish mood in the market.

9) India VIX

Volatility sustained above the 24 mark for another session onhttps://images.moneycontrol.com/static-mcnews/2024/05/20240529172344_Image2329052024.jpg Wednesday and is likely to remain elevated in the coming sessions. The market may not achieve stability until it experiences a sharp fall. The India VIX declined 0.08 percent to 24.18, from 24.20 levels.

10) Long Build-up (23 Stocks)

A long build-up was seen in 23 stocks, including Gujarat Gas, L&T Technology Services, Cummins India, AU Small Finance Bank, and Dixon Technologies. An increase in open interest (OI) and price indicates a build-up of long positions.

11) Stocks Under F&O Ban

Securities banned under the F&O segment include companies where derivative contracts cross 95 percent of the market-wide position limit.

Stocks added to F&O ban: GMR Airports Infrastructure

Stocks retained in F&O ban: Aditya Birla Fashion & Retail, Hindustan Copper, Vodafone Idea

Stocks removed from F&O ban: Biocon, Piramal Enterprises