Trade setup for November 12: Top 15 things to know before the opening bells

Nifty Trade setup for November 12

The Nifty 50 corrected sharply intraday but recouped all its losses in the second half from the 25,450 (day’s low) zone and closed with half a percent gains on November 11. The index climbed above its 25,670 resistance as well as the short-term moving averages and the midline of the Bollinger Band, signaling a positive trend. If the index sustains above this level and decisively clears the 25,800 hurdle, 26,000 is the level to watch in the upcoming sessions. However, on the lower side, 25,500–25,450 is expected to act as immediate support, according to experts.

1) Key Levels For The Nifty 50 (25,695)

Resistance based on pivot points: 25,722, 25,785, and 25,887

Support based on pivot points: 25,518, 25,455, and 25,353

Special Formation: The Nifty 50 formed a bullish candle with a long upper shadow on the daily timeframe, indicating healthy buying interest at lower levels and a continuation of upside momentum amidst high volatility. With Tuesday’s gains, the index now trades above all key moving averages. The RSI rose to 56.07, though it remained below the reference line. The Stochastic RSI showed a bullish crossover, while the MACD sustained a negative crossover with fading weak momentum in the histogram. All this indicates improving market sentiment and a possible continuation of the short-term uptrend.

2) Key Levels For The Bank Nifty (58,138)

Resistance based on pivot points: 58,200, 58,340, and 58,566

Support based on pivot points: 57,747, 57,607, and 57,380

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 a long lower shadow on the daily charts, indicating strong buying interest at the lower zone. The index continued its uptrend and higher-high formation for the third consecutive session, while sustaining above all key moving averages. The RSI jumped to 62.95, though it remained below the reference line. The MACD also stayed below the reference line, but weakness in the histogram faded on Tuesday, while the Stochastic RSI maintained a positive crossover. All this indicates improving momentum and continued strength in the banking space.

3) Nifty Call Options Data

According to the weekly options data, the 26,000 strike holds the maximum Call open interest (with 52.17 lakh contracts). This level can act as a key resistance for the Nifty in the short term. It was followed by the 26,500 strike (45.35 lakh contracts) and 25,700 strike (35.19 lakh contracts).

Maximum Call writing was observed at the 26,500 strike, which saw an addition of 22.16 lakh contracts, followed by the 26,000 and 25,700 strikes, which added 21.35 lakh and 15.91 lakh contracts, respectively. The maximum Call unwinding was seen at the 25,200 strike, which shed 35,850 contracts, followed by the 25,350 strike, which shed 6,075 contracts.

4) Nifty Put Options Data

On the Put side, the maximum Put open interest was seen at the 25,000 strike (with 53.01 lakh contracts), which can act as a key support level for the Nifty. It was followed by the 25,600 strike (40.14 lakh contracts) and the 25,500 strike (40.06 lakh contracts).

The maximum Put writing was placed at the 25,000 strike, which saw an addition of 25.6 lakh contracts, followed by the 25,500 and 25,700 strikes, which added 21.96 lakh and 21.46 lakh contracts, respectively. There was hardly any Put unwinding seen in the 25,000-26,700 strike band.

5) Bank Nifty Call Options Data

According to the monthly options data, the maximum Call open interest was seen at the 58,000 strike, with 14.99 lakh contracts. This can act as a key level for the index in the short term. It was followed by the 58,500 strike (14.76 lakh contracts) and the 60,000 strike (11.53 lakh contracts).

Maximum Call writing was observed at the 58,200 strike (with the addition of 43,785 contracts), followed by the 59,400 strike (35,875 contracts) and 59,200 strike (28,350 contracts). The maximum Call unwinding was seen at the 58,000 strike, which shed 81,270 contracts, followed by the 57,900 and 57,000 strikes, which shed 37,030 and 35,350 contracts, respectively.

6) Bank Nifty Put Options Data

On the Put side, the 58,500 strike holds the maximum Put open interest (with 14.36 lakh contracts), which can act as a key level for the index. This was followed by the 58,000 strike (14.01 lakh contracts) and the 57,000 strike (11.95 lakh contracts).

The maximum Put writing was placed at the 57,600 strike (which added 46,760 contracts), followed by the 58,200 strike (42,070 contracts) and the 58,800 strike (40,950 contracts). The maximum Put unwinding was seen at the 58,000 strike which shed 1.03 lakh contracts, followed by the 57,000 and 57,500 strikes, which shed 95,130 and 45,745 contracts, respectively.

7) Funds Flow (Rs crore)

8) Put-Call Ratio

The Nifty Put-Call ratio (PCR), which indicates the mood of the market, climbed to 1.08 on November 11, compared to 0.99 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 as long as it stays below the 13 zone, though it gained 1.54 percent to close at 12.49.

10) Long Build-up (54 Stocks)

A long build-up was seen in 54 stocks. An increase in open interest (OI) and price indicates a build-up of long positions.

11) Long Unwinding (25 Stocks)

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

12) Short Build-up (52 Stocks)

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

13) Short-Covering (79 Stocks)

79 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: Nil

Stocks retained in F&O ban: SAIL

Stocks removed from F&O ban: Nil