Trade setup for November 11: Top 15 things to know before the opening bells

Nifty Trade setup for November 11

The Nifty 50 rebounded after a three-day weakness and finished the session one-third of a percent higher on November 10. The index not only stayed above 25,300 but also climbed above the psychological 25,500 zone, thereby negating the lower high–lower low structure of the past six consecutive sessions. If the index manages to hold 25,500, which acts as immediate support, an upward move toward 25,700–25,800 in the upcoming sessions is possible. However, 25,300 is expected to remain a crucial support level, as a decisive break below it could bring bears back into action, experts said.

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

1) Key Levels For The Nifty 50 (25,574)

Resistance based on pivot points: 25,634, 25,670, and 25,727

Support based on pivot points: 25,520, 25,484, and 25,427

Special Formation: The Nifty 50 formed a bullish candle with an upper shadow on the daily timeframe, indicating a positive bias despite pressure at higher levels. The index tested the short-term moving averages (10- and 20-day EMAs) intraday but could not sustain above them on a closing basis, while it continued to trade well above the medium- and long-term moving averages. The RSI climbed to 52, though it still remained below the reference line. The Stochastic RSI is on the verge of a bullish crossover in the oversold zone, while the MACD continued to exhibit a bearish crossover with the histogram falling further. All these indicators suggest a mild positive bias with potential for further recovery, though some caution is warranted due to mixed momentum signals.

2) Key Levels For The Bank Nifty (57,938)

Resistance based on pivot points: 58,056, 58,115, and 58,211

Support based on pivot points: 57,864, 57,805, and 57,709

Resistance based on Fibonacci retracement: 58,735, 60,142

Support based on Fibonacci retracement: 57,394, 56,662

Special Formation: The Bank Nifty also formed a bullish candle with an upper shadow on the daily charts, following a Bullish Engulfing–type pattern formation in the previous session. This signals a positive trend despite some pressure at higher levels. The index continued to sustain above all key moving averages as well as the midline of the Bollinger Band. The RSI climbed to 60.71 but still reflected a bearish crossover, while the Stochastic RSI displayed a positive crossover in the oversold zone. The MACD remained below the reference line, with the histogram showing a further decline. All these indicators point toward a positive undertone but also suggest limited momentum at higher levels unless a strong breakout emerges.

3) Nifty Call Options Data

According to the weekly options data, the maximum Call open interest was seen at the 25,700 strike (with 1.56 crore contracts). This level can act as a key resistance for the Nifty in the short term. It was followed by the 26,000 strike (1.34 crore contracts) and 25,800 strike (1.16 crore contracts).

Maximum Call writing was observed at the 25,650 strike, which saw an addition of 52.11 lakh contracts, followed by the 25,700 and 26,100 strikes, which added 50.07 lakh and 41.6 lakh contracts, respectively. The maximum Call unwinding was seen at the 25,500 strike, which shed 40.45 lakh contracts, followed by the 26,000 and 25,400 strikes, which shed 16.41 lakh and 14.93 lakh contracts, respectively.

4) Nifty Put Options Data

On the Put side, the 25,500 strike holds the maximum Put open interest (with 1.36 crore contracts), which can act as a key support level for the Nifty. It was followed by the 25,000 strike (1.33 crore contracts) and the 25,400 strike (1.23 crore contracts).

The maximum Put writing was placed at the 25,500 strike, which saw an addition of 63.21 lakh contracts, followed by the 25,550 and 25,600 strikes, which added 60.08 lakh and 55.55 lakh contracts, respectively. The maximum Put unwinding was seen at the 25,200 strike, which shed 25.96 lakh contracts, followed by the 25,050 and 24,950 strikes, which shed 8.09 lakh and 6.95 lakh contracts, respectively.

5) Bank Nifty Call Options Data

According to the monthly options data, the 58,000 strike holds the maximum Call open interest, with 15.8 lakh contracts. This can act as a key resistance level for the index in the short term. It was followed by the 58,500 strike (14.61 lakh contracts) and the 60,000 strike (11.42 lakh contracts).

Maximum Call writing was observed at the 58,600 strike (with the addition of 1.92 lakh contracts), followed by the 59,300 strike (1.87 lakh contracts) and 58,500 strike (1.19 lakh contracts). The maximum Call unwinding was seen at the 57,800 strike, which shed 49,910 contracts, followed by the 57,700 and 58,800 strikes, which shed 31,115 and 29,925 contracts, respectively.

6) Bank Nifty Put Options Data

On the Put side, the maximum Put open interest was seen at the 58,000 strike (with 15.04 lakh contracts), which can act as a key level for the index. This was followed by the 58,500 strike (14.2 lakh contracts) and the 57,000 strike (12.91 lakh contracts).

The maximum Put writing was placed at the 58,500 strike (which added 4.53 lakh contracts), followed by the 56,900 strike (1.83 lakh contracts) and the 57,600 strike (1.54 lakh contracts). The maximum Put unwinding was seen at the 57,200 strike which shed 14,000 contracts, followed by the 57,700 and 58,000 strikes, which shed 13,125 and 11,970 contracts, respectively.

7) Funds Flow (Rs crore)

8) Put-Call Ratio

The Nifty Put-Call ratio (PCR), which indicates the mood of the market, rose to 0.99 on November 10, compared to 0.93 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 fear index, India VIX, declined 2.05 percent to the 12.3 zone, providing some comfort to the bulls. However, it needs to fall and sustain below the short- and medium-term moving averages to bring the bulls into a strong comfort zone.

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 (29 Stocks)

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

12) Short Build-up (41 Stocks)

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

13) Short-Covering (67 Stocks)

67 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: SAIL

Stocks retained in F&O ban: Nil

Stocks removed from F&O ban: Nil

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 taking any investment decisions.

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