Trade setup for Friday: Top 15 things to know before the opening bell

Stock market trend

Market Overview:  The benchmark index opened with a gap-up above the 25,000 milestone. Despite gradually losing momentum, the Nifty50 index concluded the session on a positive note, managing to settle above the 25,000 mark for the first time.

However, the market breadth remains restrained, with limited support from the bulls, indicating a sign of timidity. From a technical standpoint, for Nifty, 24,800 remains the crucial support zone, where buying is anticipated to emerge, followed by the sacrosanct support of the 24,600-24,500 zone. On the higher end, as per experts, 25,080-25,100 appears to be an intermediate obstacle, followed by the golden retracement placed at the 25,340 zone in the comparable period.

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

Key Levels for the Nifty 50:

Supports based on pivot points: 24876.9, 24802.65 and 24674.55

Resistance based on pivot points: 25005, 25058.85, and 25186.95

Special Formation: Nifty formed a Doji candlestick on the daily chart at its peak. On the hourly chart, it sustains above the 10-20 EMA, indicating continued bullish momentum.

Key Levels for the Bank Nifty:

Support based on pivot points: 51371.7, 51190, and 50862.6

Resistance based on pivot points: 51699.1, 51844.8, and 52172.2
Special Formation: The Bank Nifty index remains under pressure, consolidating below the crucial 52,000 mark, where call writing open interest is highest. It continues to trade below its 20-day moving average, forming resistance at higher levels. Over the past four trading days, the Relative Strength Index (RSI) has also been below the 50 mark, indicating a lack of momentum.

Nifty Call Options Data: According to weekly options data, the 25,050 strike (with 2 crore combined OI) had the maximum Call open interest, acting as a key resistance level for the Nifty in the short term. This was followed by the 25,100 Strike (1 crore combined OI).  Strong call writing was also observed at the 25,200 Strike in Nifty.

Nifty Put Options Data: On the Put side, the maximum open interest was at the 25,000 Strike (with 2.20 crore combined OI), acting as a key support level for the Nifty. This was followed by the 24,900 strike with 1 crore combined OI.

FII Funds Flow (Rs crore):

Put-Call Ratio: The Nifty Put-Call ratio (PCR), indicating market sentiment, has fallen below 1 to 0.95. An increasing PCR above 0.7 or surpassing 1 generally indicates bullish sentiment, while a ratio below 0.7 or moving towards 0.5 indicates a bearish mood.

Nifty Max Pain Point: The Nifty max pain point has moved to 25,000 Strike price. The max pain theory shows the level at which option sellers will likely have the least expiry loss.

India VIX: Volatility remains in 12-13 range. As compared to previous session India VIX, the fear index closed at 12.93 percent down 2.42 percent.Long Build-up (28 Stocks): A long build-up was seen in 28 stocks, indicated by an increase in open interest (OI) and price.

Long Unwinding (58 Stocks): 58 stocks saw a decline in open interest (OI) along with a fall in price, indicating long unwinding.

Short Build-up (75 Stocks): 75 stocks saw an increase in OI along with a fall in price, indicating a build-up of short positions.

Short-Covering (23 Stocks): 23 stocks saw short-covering, indicated by a decrease in OI along with a price increase.

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 in F&O ban: IndiaCem, Indiamart, Birlasoft, GNFC, Granules and RBL Bank

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 making any investment decisions.