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

12 Dec , 2024 By : Debdeep Gupta

Nifty Trade Setup

The market remained consolidative for the fourth consecutive session on December 11, finishing moderately higher. The chart pattern of the Nifty 50 also indicated volatility in trade. Experts believe the index is likely to break out on the higher side after the current consolidation, given the overall positive sentiment. The 24,700 level is expected to be an immediate hurdle, followed by 25,000 as a key resistance. However, 24,500 can act as immediate support, and a break below this level could bring selling pressure to the index.

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

1) Key Levels For The Nifty 50 (24,642)

Resistance based on pivot points: 24,680, 24,706, and 24,747

Support based on pivot points: 24,598, 24,572, and 24,531

Special Formation: The Nifty 50 formed a small bullish candlestick pattern with upper and lower shadows on the daily charts, indicating volatility, but it remained within Thursday's trading range. The overall trend remains positive, considering the index stayed above all key moving averages, with a positive bias in momentum indicators.

2) Key Levels For The Bank Nifty (53,391)

Resistance based on pivot points: 53,579, 53,661, and 53,793

Support based on pivot points: 53,315, 53,233, and 53,101

Resistance based on Fibonacci retracement: 54,467, 55,734

Support based on Fibonacci retracement: 52,918, 52,317

Special Formation: The Bank Nifty also remained within Thursday's range, though it wiped out all the previous day's gains and fell by 186 points. The index formed a bearish candlestick pattern with an upper shadow on the daily timeframe, indicating pressure at higher levels. Overall, the trend remains positive as the banking index traded above all key moving averages on both the daily and weekly charts.

3) Nifty Call Options Data

According to the weekly options data, the 25,000 strike holds the maximum open interest (with 1.42 crore contracts). This level can act as a key resistance level for the Nifty in the short term. It was followed by the 24,700 strike (1.37 crore contracts), and the 24,600 & 24,800 strikes (1 crore contracts each).

Maximum Call writing was observed at the 24,650 strike, which saw an addition of 29.93 lakh contracts, followed by the 24,600 and 24,700 strikes, which added 26.82 lakh and 25.22 lakh contracts, respectively, while the maximum Call unwinding was seen at the 25,500 strike, which shed 18.13 lakh contracts, followed by the 25,300 and 25,350 strikes, which shed 14.01 lakh and 13.76 lakh contracts, respectively.

4) Nifty Put Options Data

On the Put side, the maximum open interest was seen at the 24,000 strike (with 1.11 crore contracts), which can act as a key support level for the Nifty. It was followed by the 24,500 strike (1.01 crore contracts), and the 24,600 strike (93.25 lakh contracts).

The maximum Put writing was placed at the 24,500 strike, which saw an addition of 39.64 lakh contracts, followed by the 24,600, and 24,650 strikes, with 38.08 lakh, and 18.73 lakh contracts added, respectively, while the maximum Put unwinding was seen at the 24,300 strike which shed 24.01 lakh contracts, followed by the 24,750 and 24,800 strikes, which shed 3.62 lakh and 2.73 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 24.42 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 (19.38 lakh contracts) and the 53,500 strike (17.02 lakh contracts).

Maximum Call writing was visible at the 53,500 strike (with the addition of 4.79 lakh contracts), followed by the 54,500 strike (3.81 lakh contracts) and the 54,000 strike (3.3 lakh contracts), while the maximum Call unwinding was seen at the 52,000 strike, which shed 51,075 contracts, followed by the 53,000 and 55,250 strikes, which shed 16,845 and 9,060 contracts, respectively.

6) Bank Nifty Put Options Data

On the Put side, the maximum open interest was placed at the 52,000 strike (with 19.08 lakh contracts), which can act as a key support level for the index. This was followed by the 53,500 strike (17.21 lakh contracts) and the 52,500 strike (17.5 lakh contracts).

The maximum Put writing was observed at the 53,500 strike (which added 3.79 lakh contracts), followed by the 54,300 strike (1.07 lakh contracts) and the 52,500 strike (1.02 lakh contracts), while the maximum Put unwinding was seen at the 52,000 strike, which shed 1.05 lakh contracts, followed by the 53,100 and 54,000 strikes, which shed 22,620 and 21,630 contracts, respectively.

7) Funds Flow (Rs crore)

8) Put-Call Ratio

The Nifty Put-Call ratio (PCR), which indicates the mood of the market, rose to 0.87 on December 11, from 0.86 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 dropped for the fourth consecutive session and reached a multi-week low, turning further favorable for bulls. The India VIX, the fear index, declined by 3.7 percent to 13.27, down from 13.78.

10) Long Build-up (71 Stocks)

A long build-up was seen in 71 stocks. An increase in open interest (OI) and price indicates a build-up of long positions.

11) Long Unwinding (33 Stocks)

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

12) Short Build-up (61 Stocks)

61 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.