Trade setup for December 1: Top 15 things to know before the opening bells

Nifty Trade setup for December 1

The Nifty 50 closed the range-bound session flat with a negative bias on November 28, rising 0.5 percent for the week and nearly 2 percent for the month. The index sustained near the upper Bollinger Bands with positive momentum indicators. Hence, the bulls still have the upper hand despite moderate profit-booking after the record-high rally. If the index reclaims and sustains above last week's high of 26,310, an upward move toward 26,400–26,500 is likely in the upcoming sessions, while immediate crucial support is placed in the 26,100–26,000 zone, according to experts.

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

1) Key Levels For The Nifty 50 (26,203)

Resistance based on pivot points: 26,260, 26,286, and 26,327

Support based on pivot points: 26,177, 26,152, and 26,110

Special Formation: The Nifty 50 closed within the previous day's range and formed a small bearish candle with upper and lower shadows on the daily charts, indicating some volatility. However, the larger degree higher-high–higher-low pattern remains intact, with expansion in the Bollinger Bands. The index sustained well above all key moving averages, while the RSI (62.9), Stochastic RSI, and MACD maintained buy signals with the histogram sustaining above the zero line. All this indicates continued bullish bias.

2) Key Levels For The Bank Nifty (59,753)

Resistance based on pivot points: 59,864, 59,934, and 60,048

Support based on pivot points: 59,636, 59,565, and 59,451

Resistance based on Fibonacci retracement: 60,875, 62,294

Support based on Fibonacci retracement: 59,251, 58,851

Special Formation: The Bank Nifty extended its uptrend for the third straight session despite a flat close near the upper Bollinger Band, forming a Doji pattern on the daily charts which indicated indecision after hitting a record high on Friday. Overall, the trend remains up, with short- and medium-term moving averages trending higher and the index sustaining near the upper Bollinger Bands. Momentum indicators also maintain a bullish bias, with the RSI at 72.18 and the MACD histogram sustaining above the zero line. All this indicates continued strength in the index.

3) Nifty Call Options Data

According to the weekly options data, the maximum Call open interest was seen at the 26,500 strike (with 1.35 crore contracts). This level can act as a key resistance level for the Nifty in the short term. It was followed by the 26,300 strike (1.22 crore contracts) and 26,400 strike (1.12 crore contracts).

Maximum Call writing was observed at the 26,400 strike, which saw an addition of 39.78 lakh contracts, followed by the 26,500 and 26,300 strikes, which added 29.5 lakh and 29.07 lakh contracts, respectively. The maximum Call unwinding was seen at the 26,600 strike, which shed 14.58 lakh contracts, followed by the 26,100 and 26,000 strikes, which shed 5.61 lakh and 4.42 lakh contracts, respectively.

4) Nifty Put Options Data

On the Put side, the 26,000 strike holds the maximum Put open interest (with 1.7 crore contracts), which can act as a key support level for the Nifty in the short term. It was followed by the 26,100 strike (1.1 crore contracts) and the 26,200 strike (1.09 crore contracts).

The maximum Put writing was placed at the 26,200 strike, which saw an addition of 34.76 lakh contracts, followed by the 26,100 and 26,000 strikes, which added 26.76 lakh and 16.39 lakh contracts, respectively. The maximum Put unwinding was seen at the 25,700 strike, which shed 13.94 lakh contracts, followed by the 25,650 and 25,550 strikes, which shed 3.34 lakh and 1.46 lakh contracts, respectively.

5) Bank Nifty Call Options Data

According to the monthly options data, the 58,500 strike holds the maximum Call open interest, with 12.91 lakh contracts. This can act as a key level for the index in the short term. It was followed by the 60,000 strike (10.84 lakh contracts) and the 62,000 strike (7.33 lakh contracts).

Maximum Call writing was observed at the 60,000 strike (with the addition of 1.11 lakh contracts), followed by the 59,700 strike (56,455 contracts) and 61,500 strike (39,655 contracts). The maximum Call unwinding was seen at the 59,200 strike, which shed 24,430 contracts, followed by the 60,900 and 58,800 strikes, which shed 8,890 and 6,370 contracts, respectively.

6) Bank Nifty Put Options Data

On the Put side, the maximum Put open interest was seen at the 58,500 strike (with 20.61 lakh contracts), which can act as a key support level for the index. This was followed by the 59,000 strike (12.97 lakh contracts) and the 59,500 strike (7.7 lakh contracts).

The maximum Put writing was placed at the 59,000 strike (which added 1.27 lakh contracts), followed by the 59,500 strike (57,540 contracts) and the 60,000 strike (51,765 contracts). The maximum Put unwinding was seen at the 59,300 strike, which shed 21,315 contracts, followed by the 58,400 and 59,700 strikes, which shed 13,510 and 9,415 contracts, respectively.

7) Funds Flow (Rs crore)

8) Put-Call Ratio

The Nifty Put-Call ratio (PCR), which indicates the mood of the market, declined to 1.14 on November 28, compared to 1.16 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, also known as the fear gauge, corrected for the entire week, falling not only below all key moving averages but also below the 12 zone, signalling comfort for the bulls. It was down 1.42 percent on Friday to 11.62, and for the week, it dropped 14.77 percent—the biggest weekly fall since May this year.

10) Long Build-up (51 Stocks)

A long build-up was seen in 51 stocks. An increase in open interest (OI) and price indicates a build-up of long positions.

11) Long Unwinding (42 Stocks)

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

12) Short Build-up (87 Stocks)

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

13) Short-Covering (33 Stocks)

33 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.

15) 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: Sammaan Capital

Stocks retained in F&O ban: Nil

Stocks removed from F&O ban: Nil

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.

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