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

Nifty Trade setup for December 15

The Nifty 50 extended its rally and closed nearly 0.6 percent higher for the second consecutive session after a gap-up opening on December 12. With Friday’s rally, the index climbed above short-term moving averages and the midline of the Bollinger Bands. The index reclaimed the 25,950–26,000 zone, which is crucial for its upward journey. Sustaining above these levels can open the door for 26,200–26,300, but a decisive fall below them can raise the possibility of consolidation, with support placed at the 25,750–25,700 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 (26,047)

Resistance based on pivot points: 26,060, 26,088, and 26,134

Support based on pivot points: 25,969, 25,941, and 25,895

Special Formation: The Nifty 50 formed a bullish candle on the daily charts for another session, signalling a positive trend. The index also reclaimed short-term moving averages (10- and 20-day EMAs) as well as the midline of the Bollinger Bands, further strengthening the trend. The RSI inclined upward, though it remained below the reference line, while the Stochastic RSI turned bullish. The MACD stayed below the reference line, but the histogram showed fading weakness for another session. All this indicates improving momentum, though confirmation is still awaited.

2) Key Levels For The Bank Nifty (59,390)

Resistance based on pivot points: 59,509, 59,585, and 59,708

Support based on pivot points: 59,264, 59,189, and 59,066

Resistance based on Fibonacci retracement: 59,455, 60,875

Support based on Fibonacci retracement: 58,985, 58,636

Special Formation: The Bank Nifty formed a Doji pattern after a day of bullish candle formation, indicating indecision between bulls and bears. The banking index also reclaimed the midline of the Bollinger Bands and the 10-day EMA, but it could not close above the previous day’s high. The RSI showed a bullish crossover and moved higher to 58.21, though it was still below the reference line. The MACD remained below the reference line, while weakness in the histogram faded slightly. All this indicates cautious optimism with signs of consolidation.

3) Nifty Call Options Data

According to the weekly options data, the maximum Call open interest was seen at the 26,500 strike (with 1.18 crore contracts). This level can act as a key resistance level for the Nifty in the short term. It was followed by the 26,200 strike (96.74 lakh contracts) and 26,300 strike (90.66 lakh contracts).

Maximum Call writing was observed at the 26,050 strike, which saw an addition of 18.61 lakh contracts, followed by the 26,500 and 26,350 strikes, which added 14.55 lakh and 13.33 lakh contracts, respectively. The maximum Call unwinding was seen at the 25,900 strike, which shed 40.95 lakh contracts, followed by the 25,950, and 26,000 strikes, which shed 20.42 lakh and 18.99 lakh contracts, respectively.

4) Nifty Put Options Data

On the Put side, the 26,000 strike holds the maximum Put open interest (with 1.31 crore contracts), which can act as a key support level for the Nifty in the short term. It was followed by the 25,800 strike (1.24 crore contracts) and the 25,900 strike (1.14 crore contracts).

The maximum Put writing was placed at the 26,000 strike, which saw an addition of 87.63 lakh contracts, followed by the 25,950 and 25,900 strikes, which added 53 lakh and 45.18 lakh contracts, respectively. The maximum Put unwinding was seen at the 25,350 strike, which shed 3.71 lakh contracts, followed by the 25,450 and 25,400 strikes, which shed 1.25 lakh and 81,675 contracts, respectively.

5) Bank Nifty Call Options Data

According to the monthly options data, the 60,000 strike holds the maximum Call open interest, with 14.98 lakh contracts. This can act as a key resistance level for the index in the short term. It was followed by the 59,500 strike (13.35 lakh contracts) and the 61,000 strike (8.37 lakh contracts).

Maximum Call writing was observed at the 60,000 strike (with the addition of 84,000 contracts), followed by the 58,500 strike (68,075 contracts) and 58,800 strike (60,760 contracts). The maximum Call unwinding was seen at the 59,100 strike, which shed 56,455 contracts, followed by the 59,200 and 59,500 strikes, which shed 54,810 and 49,945 contracts, respectively.

6) Bank Nifty Put Options Data

On the Put side, the maximum Put open interest was seen at the 59,500 strike (with 16.85 lakh contracts), which can act as a key level for the index. This was followed by the 59,000 strike (13.19 lakh contracts) and the 58,500 strike (10.6 lakh contracts).

The maximum Put writing was placed at the 58,500 strike (which added 1.06 lakh contracts), followed by the 59,400 strike (73,010 contracts) and the 59,000 strike (65,555 contracts). The maximum Put unwinding was seen at the 60,000 strike, which shed 55,195 contracts, followed by the 58,000 and 58,700 strikes, which shed 34,335 and 23,730 contracts, respectively.

7) Funds Flow (Rs crore)

8) Put-Call Ratio

The Nifty Put-Call ratio (PCR), which indicates the mood of the market, climbed to 1.15 on December 12, compared to 0.94 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, known as the fear gauge, fell 2.81 percent to 10.11—the lowest closing level since October 10—extending its downtrend for the fourth straight session and sustaining below all key moving averages, which provides more comfort to bulls. Generally, a VIX at lower levels signals reduced uncertainty, but it also increases the possibility of a sharp market move on either side.

10) Long Build-up (97 Stocks)

A long build-up was seen in 97 stocks. An increase in open interest (OI) and price indicates a build-up of long positions.

11) Long Unwinding (10 Stocks)

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

12) Short Build-up (33 Stocks)

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

13) Short-Covering (72 Stocks)

72 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: Nil

Stocks retained in F&O ban: Bandhan Bank

Stocks removed from F&O ban: Sammaan Capital