The benchmark Nifty 50 closed flat with a positive bias after range-bound trading, extending its uptrend and higher high–higher low formation for the third consecutive session on December 23. Momentum indicators also remained healthy. Hence, according to experts, the ongoing consolidation may continue for a couple of days before the index gains strength for a move toward the 26,300–26,400 levels. The immediate hurdle is placed at 26,200, and sustaining above it is required for a sharp market run. Until then, consolidation may be seen, with immediate key support at 26,000.
Here are 15 data points we have collated to help you spot profitable trades:
1) Key Levels For The Nifty 50 (26,177)
Resistance based on pivot points: 26,220, 26,247, and 26,291
Support based on pivot points: 26,133, 26,106, and 26,062
Special Formation: The Nifty 50 formed a small-bodied bearish candle with upper and lower shadows on the daily timeframe, indicating indecision among market participants after the recent pullback rally. The higher high–higher low structure continued, with short-term moving averages trending upward and the 10-day EMA climbing above the 20-day EMA. The RSI climbed to 58.70 and held above the reference line, while the Stochastic RSI maintained a strong bullish crossover. The MACD also turned positive, with the histogram rising above the zero line. All this indicates a continuation of the positive underlying trend.
2) Key Levels For The Bank Nifty (59,300)
Resistance based on pivot points: 59,377, 59,421, and 59,492
Support based on pivot points: 59,235, 59,192, and 59,121
Resistance based on Fibonacci retracement: 59,449, 60,859
Support based on Fibonacci retracement: 58,983, 58,635
Special Formation: The Bank Nifty formed a bearish candle with upper and lower shadows on the daily timeframe, signalling indecision among bulls and bears, though the higher top–higher bottom formation continued. The index sustained above all key moving averages, even though it closed marginally below the midline of the Bollinger Bands. The Stochastic RSI maintained a bullish crossover, while the RSI slipped slightly to 55.99 but held marginally above the reference line. Histogram weakness faded further, though the MACD stayed below the reference line. All this indicates a cautious yet positive bias in the near term.
According to the monthly options data, the 27,000 strike holds the maximum Call open interest (with 1.1 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 (75.58 lakh contracts) and 26,500 strike (72.27 lakh contracts).
Maximum Call writing was observed at the 26,200 strike, which saw an addition of 28.86 lakh contracts, followed by the 26,600 and 26,700 strikes, which added 24.12 lakh and 23.41 lakh contracts, respectively. The maximum Call unwinding was seen at the 26,000 strike, which shed 4.36 lakh contracts, followed by the 25,900 and 25,800 strikes, which shed 2.62 lakh and 63,150 contracts, respectively.
On the Put side, the maximum Put open interest was seen at the 26,000 strike (with 1.19 crore contracts), which can act as a key support level for the Nifty in the short term. It was followed by the 26,200 strike (65.87 lakh contracts) and the 25,800 strike (57.56 lakh contracts).
The maximum Put writing was placed at the 26,200 strike, which saw an addition of 28.24 lakh contracts, followed by the 25,700 and 25,800 strikes, which added 24.94 lakh and 24.75 lakh contracts, respectively. The maximum Put unwinding was seen at the 26,500 strike, which shed 71,775 contracts, followed by the 25,650 and 27,000 strikes, which shed 68,775 and 58,300 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 20.15 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 (18.75 lakh contracts) and the 61,000 strike (8.9 lakh contracts).
Maximum Call writing was observed at the 60,700 strike (with the addition of 1.33 lakh contracts), followed by the 60,800 and 59,300 strikes (1.28 lakh contracts each). The maximum Call unwinding was seen at the 59,000 strike, which shed 46,865 contracts, followed by the 58,800 and 59,100 strikes, which shed 22,890 and 19,320 contracts, respectively.
6) Bank Nifty Put Options Data
On the Put side, the 59,000 strike holds the maximum Put open interest (with 13.96 lakh contracts), which can act as a key support level for the index. This was followed by the 59,500 strike (12.89 lakh contracts) and the 58,500 strike (10.68 lakh contracts).
The maximum Put writing was placed at the 59,300 strike (which added 1.04 lakh contracts), followed by the 59,400 strike (84,175 contracts) and the 58,000 strike (76,545 contracts). The maximum Put unwinding was seen at the 57,500 strike, which shed 1.19 lakh contracts, followed by the 59,100 and 59,000 strikes, which shed 31,850 and 11,410 contracts, respectively.
The Nifty Put-Call ratio (PCR), which indicates the mood of the market, dropped to 1.14 on December 23, compared to 1.42 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, hit a fresh record closing low of 9.38 on Tuesday, falling 3.07 percent and sustaining well below all key moving averages, which collectively provided strong comfort to bulls.
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 (69 Stocks)
69 stocks saw an increase in OI along with a fall in price, indicating a build-up of short positions.
13) Short-Covering (38 Stocks)
38 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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