The Nifty 50 recorded a seven-tenth of a percent rally after a gap-up opening and sustained above all key moving averages, continuing its higher-high formation for the third consecutive session on November 12, signaling a positive trend ahead. Now, the index needs to reclaim and sustain above 25,900 for a further upward move toward the 26,000–26,100 hurdle. Until then, it may consolidate with 25,700 support, according to experts.
Here are 15 data points we have collated to help you spot profitable trades:
1) Key Levels For The Nifty 50 (25,876)
Resistance based on pivot points: 25,922, 25,959, and 26,017
Support based on pivot points: 25,805, 25,769, and 25,710
Special Formation: The Nifty 50 formed a bullish candle with upper and lower shadows on the daily timeframe after a gap-up opening, accompanied by above-average volumes, indicating an uptrend continuation pattern. The index sustained above all key moving averages and the midline of the Bollinger Band. The RSI climbed to 61.27 and is on the verge of a bullish crossover, while the Stochastic RSI sustained a positive crossover. The MACD remained below the reference line, though the weakness in the histogram faded further. All these factors indicate a continuation of bullish momentum.
2) Key Levels For The Bank Nifty (58,275)
Resistance based on pivot points: 58,446, 58,526, and 58,654
Support based on pivot points: 58,190, 58,111, and 57,982
Resistance based on Fibonacci retracement: 58,735, 60,142
Support based on Fibonacci retracement: 57,394, 56,662
Special Formation: The Bank Nifty formed a Bearish Belt Hold-like candlestick pattern on the daily charts after a rally since last Friday, but still closed 0.23 percent higher, sustaining above the falling resistance trendline. The index remained above all key moving averages and the midline of the Bollinger Band, while the RSI, at 64.44, climbed further and reached near the reference line. The Stochastic RSI maintained its positive crossover. The MACD remained below the reference line, but the weak momentum in its histogram faded further. All these factors indicate a gradual strengthening of the trend despite the short-term consolidation signal.
According to the weekly options data, the maximum Call open interest was seen at the 26,000 strike (with 68.31 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 (62.24 lakh contracts) and 25,900 strike (44.49 lakh contracts).
Maximum Call writing was observed at the 26,700 strike, which saw an addition of 24.34 lakh contracts, followed by the 25,900 and 26,400 strikes, which added 22.47 lakh and 18.2 lakh contracts, respectively. The maximum Call unwinding was seen at the 25,700 strike, which shed 16.22 lakh contracts, followed by the 25,600 and 25,500 strikes, which shed 8.23 lakh and 6.56 lakh contracts, respectively.
On the Put side, the 25,800 strike holds the maximum Put open interest (with 76.08 lakh contracts), which can act as a key support level for the Nifty. It was followed by the 25,500 strike (60.32 lakh contracts) and the 25,600 strike (55.69 lakh contracts).
The maximum Put writing was placed at the 25,800 strike, which saw an addition of 61.49 lakh contracts, followed by the 25,900 and 25,850 strikes, which added 44.71 lakh and 33.45 lakh contracts, respectively. There was hardly any Put unwinding seen in the 25,200-26,700 strike band.
5) Bank Nifty Call Options Data
According to the monthly options data, the 58,500 strike holds the maximum Call open interest, with 15.16 lakh contracts. This can act as a key resistance level for the index in the short term. It was followed by the 58,000 strike (13.37 lakh contracts) and the 60,000 strike (11.48 lakh contracts).
Maximum Call writing was observed at the 58,400 strike (with the addition of 99,890 contracts), followed by the 59,500 strike (78,330 contracts) and 58,600 strike (69,790 contracts). The maximum Call unwinding was seen at the 58,000 strike, which shed 1.61 lakh contracts, followed by the 58,100 and 58,200 strikes, which shed 1.18 lakh and 1.08 lakh contracts, respectively.
6) Bank Nifty Put Options Data
On the Put side, the maximum Put open interest was seen at the 58,500 strike (with 15.54 lakh contracts), which can act as a key level for the index. This was followed by the 58,000 strike (14.81 lakh contracts) and the 57,000 strike (12.18 lakh contracts).
The maximum Put writing was placed at the 58,500 strike (which added 1.18 lakh contracts), followed by the 58,600 strike (90,090 contracts) and the 58,000 strike (79,730 contracts). The maximum Put unwinding was seen at the 56,700 strike which shed 26,145 contracts, followed by the 57,600 and 58,200 strikes, which shed 25,655 and 17,395 contracts, respectively.
The Nifty Put-Call ratio (PCR), which indicates the mood of the market, jumped to 1.23 on November 12, compared to 1.08 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, also known as the fear gauge, declined 3.04 percent to 12.11, providing comfort to the bulls. A further decline in the VIX from here can act as a strong supportive factor for the market.
A long build-up was seen in 68 stocks. An increase in open interest (OI) and price indicates a build-up of long positions.
11) Long Unwinding (26 Stocks)
26 stocks saw a decline in open interest (OI) along with a fall in price, indicating long unwinding.
12) Short Build-up (39 Stocks)
39 stocks saw an increase in OI along with a fall in price, indicating a build-up of short positions.
13) Short-Covering (80 Stocks)
80 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: SAIL
Stocks removed from F&O ban: Nil
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