The Nifty 50 bounced back sharply on December 19 after four days of weakness, recouping all the previous three-day losses in a single session. Regaining levels above short-term moving averages and the falling resistance trendline, along with significantly higher volumes and a bullish crossover in momentum indicators, supported market sentiment.
Hence, if the index maintains its upward journey and sustains above the 26,000 zone, the 26,200–26,300 levels will be crucial to watch in the upcoming sessions. However, the 25,800–25,700 zone is expected to act as a key support, according to experts.
Here are 15 data points we have collated to help you spot profitable trades:
1) Key Levels For The Nifty 50 (25,966)
Resistance based on pivot points: 25,990, 26,016, and 26,060
Support based on pivot points: 25,904, 25,877, and 25,834
Special Formation: The Nifty 50 formed a bullish candle with minor upper and lower shadows on the daily charts after a gap-up opening, signalling a positive trend despite volatility. The index negated lower high-lower low formation of previous four consecutive sessions. It defended the 50-day EMA and the rising support trendline and closed above short-term moving averages as well as the falling resistance trendline. The RSI rose to 52.07 with a positive crossover, and the Stochastic RSI also turned bullish, while the MACD histogram showed fading weakness. All these indicators suggest strengthening bullish momentum.
2) Key Levels For The Bank Nifty (59,069)
Resistance based on pivot points: 59,129, 59,186, and 59,279
Support based on pivot points: 58,943, 58,886, and 58,793
Resistance based on Fibonacci retracement: 59,455, 60,874
Support based on Fibonacci retracement: 58,636, 58,287
Special Formation: The Bank Nifty traded within the previous day’s range and formed a Doji-like candlestick pattern, following an inverted hammer-like pattern in the prior session, signalling indecision. The index sustained above the rising support trendline, though it closed marginally below the short-term moving averages (10- and 20-day EMAs) with above-average volumes. The Stochastic RSI is on the verge of a positive crossover, while the RSI inclined upward to 52.28 but remained below the reference line. The MACD histogram also showed fading weakness. All these indicators point towards cautious optimism.
According to the weekly options data, the 26,000 strike holds the maximum Call open interest (with 1.29 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 (98.31 lakh contracts) and 26,100 strike (79.47 lakh contracts).
Maximum Call writing was observed at the 26,200 strike, which saw an addition of 23.39 lakh contracts, followed by the 26,400 and 26,250 strikes, which added 8.47 lakh and 7.58 lakh contracts, respectively. The maximum Call unwinding was seen at the 25,900 strike, which shed 54.32 lakh contracts, followed by the 25,800 and 25,850 strikes, which shed 39.3 lakh and 34.32 lakh contracts, respectively.
On the Put side, the maximum Put open interest was seen at the 25,900 strike (with 1.3 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 (1.06 crore contracts) and the 26,000 strike (94.37 lakh contracts).
The maximum Put writing was placed at the 25,900 strike, which saw an addition of 94.06 lakh contracts, followed by the 25,950 and 26,000 strikes, which added 68.56 lakh and 63.72 lakh contracts, respectively. The maximum Put unwinding was seen at the 25,300 strike, which shed 7.3 lakh contracts, followed by the 25,400 and 25,350 strikes, which shed 4.65 lakh and 1.78 lakh contracts, respectively.
5) Bank Nifty Call Options Data
According to the monthly options data, the maximum Call open interest was seen at the 59,500 strike, with 18.02 lakh contracts. This can act as a key resistance level for the index in the short term. It was followed by the 60,000 strike (17.82 lakh contracts) and the 59,000 strike (11.21 lakh contracts).
Maximum Call writing was observed at the 59,200 strike (with the addition of 65,975 contracts), followed by the 59,300 strike (56,175 contracts) and 60,500 strike (23,520 contracts). The maximum Call unwinding was seen at the 61,000 strike, which shed 81,340 contracts, followed by the 59,000 and 59,700 strikes, which shed 67,305 and 60,515 contracts, respectively.
6) Bank Nifty Put Options Data
On the Put side, the 59,000 strike holds the maximum Put open interest (with 13.98 lakh contracts), which can act as a key support level for the index. This was followed by the 59,500 strike (12.02 lakh contracts) and the 58,500 strike (10.44 lakh contracts).
The maximum Put writing was placed at the 59,000 strike (which added 1.14 lakh contracts), followed by the 58,800 strike (63,245 contracts) and the 59,200 strike (56,455 contracts). The maximum Put unwinding was seen at the 59,500 strike, which shed 57,260 contracts, followed by the 58,000 and 59,700 strikes, which shed 43,330 and 22,925 contracts, respectively.
The Nifty Put-Call ratio (PCR), which indicates the mood of the market, jumped to 1.13 on December 19, compared to 0.83 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, which measures expected market volatility, remained supportive for bulls and also signalled the possibility of sharp market moves. It fell 1.91 percent to hit an all-time closing low of 9.52, continuing its downtrend for the fourth consecutive session.
A long build-up was seen in 93 stocks. An increase in open interest (OI) and price indicates a build-up of long positions.
6 stocks saw a decline in open interest (OI) along with a fall in price, indicating long unwinding.
12) Short Build-up (23 Stocks)
23 stocks saw an increase in OI along with a fall in price, indicating a build-up of short positions.
13) Short-Covering (90 Stocks)
90 stocks saw short-covering, meaning a decrease in OI, along with a price increase.
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.
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: Sammaan Capital
Stocks removed from F&O ban: Nil
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