Trade setup for January 2: Top 15 things to know before the opening bell

Nifty Trade Setup

The Nifty 50 extended gains for the second consecutive session, rising 0.4% on January 1, marking a positive start to the new year, 2025. The index climbed above the 200-day EMA (23,700) but remained below the 200-day SMA (23,880), which is critical for further upward momentum. If the index sustains above 23,700, the first target would be 23,900, followed by 24,000, a key resistance zone. However, failure to maintain levels above 23,700 could pull the index down toward the 23,600–23,500 range, experts suggested. Overall, the index is expected to trade within the 23,500–24,000 range in the upcoming sessions.

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

1) Key Levels For The Nifty 50 (23,743)

Resistance based on pivot points: 23,809, 23,870, and 23,970

Support based on pivot points: 23,610, 23,549, and 23,450

Special Formation: The Nifty 50 has displayed a bullish candlestick pattern on the daily timeframe, forming higher highs and higher lows—a positive signal. However, the broader sentiment remains weak as the index is still trading below the 10, 20, 50, and 100-day EMAs. Momentum indicators, such as the RSI and MACD, also reflect a negative bias.

2) Key Levels For The Bank Nifty (51,061)

Resistance based on pivot points: 51,276, 51,473, and 51,793

Support based on pivot points: 50,636, 50,439, and 50,119

Resistance based on Fibonacci retracement: 51,574, 52,127

Support based on Fibonacci retracement: 50,672, 49,787

Special Formation: The Bank Nifty managed to close above both the 200-day EMA and 200-day SMA, defending these critical levels. Additionally, it held above an upward-sloping support trendline, which is a positive indicator. However, it continues to trade below the 10, 20, 50, and 100-day EMAs and remains in the lower band of the Bollinger Bands. The negative bias in momentum indicators suggests short-term weakness.

3) Nifty Call Options Data

According to the weekly options data, the 24,500 strike holds the maximum Call open interest (with 1.26 crore contracts). This level can act as a key resistance level for the Nifty in the short term. It was followed by the 24,300 strike (1.03 crore contracts), and the 24,100 strike (95.12 lakh contracts).

Maximum Call writing was observed at the 24,100 strike, which saw an addition of 3.76 lakh contracts, followed by the 24,600 and 24,150 strikes, which added 13.3 lakh and 11.96 lakh contracts, respectively, while the maximum Call unwinding was seen at the 23,900 strike, which shed 15.77 lakh contracts, followed by the 24,500 and 23,700 strikes, which shed 12.78 lakh and 10.54 lakh contracts, respectively.

4) Nifty Put Options Data

On the Put side, the 23,000 strike holds the maximum Put open interest (with 1.03 crore contracts), which can act as a key support level for the Nifty. It was followed by the 23,200 strike (83.25 lakh contracts), and the 23,500 strike (76.42 lakh contracts).

The maximum Put writing was placed at the 23,200 strike, which saw an addition of 33.06 lakh contracts, followed by the 23,000, and 23,250 strikes, with 24.8 lakh, and 23.74 lakh contracts added, respectively, while the maximum Put unwinding was seen at the 24,100 strike, which shed 1.25 lakh contracts, followed by the 24,200 and 24,400 strikes, which shed 68,100 and 53,175 contracts, respectively.

5) Bank Nifty Call Options Data

According to the monthly options data, the 53,000 strike holds the maximum Call open interest, with 13.99 lakh contracts. This can act as a key resistance level for the index in the short term. It was followed by the 52,000 strike (13.53 lakh contracts) and the 51,500 strike (8.16 lakh contracts).

Maximum Call writing was visible at the 51,100 strike (with the addition of 46,950 contracts), followed by the 53,000 strike (44,325 contracts) and the 52,500 strike (37,860 contracts), while the maximum Call unwinding was seen at the 51,000 strike, which shed 83,880 contracts, followed by the 50,800 and 52,000 strikes, which shed 42,510 and 29,310 contracts, respectively.

6) Bank Nifty Put Options Data

On the Put side, the maximum Put open interest was seen at the 51,000 strike (with 10.51 lakh contracts), which can act as a key support level for the index. This was followed by the 50,000 strike (9.27 lakh contracts) and the 51,500 strike (8.89 lakh contracts).

The maximum Put writing was observed at the 50,000 strike (which added 1.14 lakh contracts), followed by the 50,500 strike (78,885 contracts) and the 51,100 strike (33,945 contracts), while the maximum Put unwinding was seen at the 51,000 strike, which shed 38,085 contracts, followed by the 52,000 and 50,800 strikes, which shed 27,480 and 26,205 contracts, respectively.

7) Funds Flow (Rs crore)

8) Put-Call Ratio

The Nifty Put-Call ratio (PCR), which indicates the mood of the market, jumped to 1.06 on January 1, from 0.99 level 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 market volatility, extended its upward trajectory for the third consecutive session, rising by 0.42% to 14.51. This signals that bulls should exercise caution moving forward.

10) Long Build-up (76 Stocks)

A long build-up was seen in 76 stocks. An increase in open interest (OI) and price indicates a build-up of long positions.

11) Long Unwinding (30 Stocks)

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

12) Short Build-up (47 Stocks)

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

13) Short-Covering (74 Stocks)

74 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: Manappuram Finance

Stocks retained in F&O ban: Nil

Stocks removed from F&O ban: Nil