The Nifty 50 snapped its six-day winning streak on profit-booking and failed to hold the psychological 26,000 zone, declining 0.4 percent on November 18. However, the trend remains in favour of the bulls as long as the index trades well above all key moving averages. Until the index decisively crosses its 26,100 hurdle, consolidation is likely to continue, with immediate support at the 25,800–25,700 zone, followed by 25,500 as a crucial support. Conversely, sustaining above the hurdle can open the door for 26,300–26,500 levels, according to experts.
Here are 15 data points we have collated to help you spot profitable trades:
1) Key Levels For The Nifty 50 (25,910)
Resistance based on pivot points: 25,997, 26,034, and 26,092
Support based on pivot points: 25,880, 25,844, and 25,785
Special Formation: The Nifty 50 formed a bearish candle resembling a Bearish Engulfing–like candlestick pattern on the daily timeframe. It is a bearish reversal pattern formed after the recent rally, but confirmation is needed in the following session. The index still trades above all key moving averages, with short- and medium-term moving averages trending upward. The RSI declined to 60.18 but still maintained a bullish crossover, while the gap between the MACD and the reference line narrowed considerably, with moderate weakness in the histogram. All this indicates caution but not a confirmed reversal.
2) Key Levels For The Bank Nifty (58,899)
Resistance based on pivot points: 59,050, 59,122, and 59,239
Support based on pivot points: 58,818, 58,746, and 58,629
Resistance based on Fibonacci retracement: 60,142, 64,208
Support based on Fibonacci retracement: 57,796, 56,986
Special Formation: The Bank Nifty formed a bearish candle with upper and lower shadows on the daily charts, indicating some nervousness amid volatility after hitting a new high of 59,104. The index corrected 0.11 percent but continued its higher-high–higher-low formation for another session and sustained above all key moving averages. The RSI at 70 remained in bullish crossover, while the MACD showed a breakout on the higher side with the histogram climbing above the zero line. The Stochastic RSI continued to trend higher with a positive crossover. All this indicates ongoing bullish momentum despite minor volatility.
According to the monthly options data, the maximum Call open interest was seen at the 26,000 strike (with 1.33 crore contracts). This level can act as a key resistance for the Nifty in the short term. It was followed by the 26,500 strike (72.59 lakh contracts) and 26,200 strike (61.65 lakh contracts).
Maximum Call writing was observed at the 26,000 strike, which saw an addition of 46.83 lakh contracts, followed by the 26,500 and 26,300 strikes, which added 27.45 lakh and 20.41 lakh contracts, respectively. The maximum Call unwinding was seen at the 25,500 strike, which shed 58,050 contracts, followed by the 25,200 and 25,550 strikes, which shed 21,825 and 14,850 contracts, respectively.
On the Put side, the 26,000 strike holds the maximum Put open interest (with 94.05 lakh contracts), which can act as a key level for the Nifty. It was followed by the 25,500 strike (69.57 lakh contracts) and the 25,900 strike (51.75 lakh contracts).
The maximum Put writing was placed at the 26,000 strike, which saw an addition of 24.21 lakh contracts, followed by the 25,500 and 25,200 strikes, which added 22.42 lakh and 17.78 lakh contracts, respectively. The maximum Put unwinding was seen at the 26,200 strike which shed 1.3 lakh contracts, followed by the 26,500 and 26,100 strikes, which shed 69,075 and 44,700 contracts, respectively.
5) Bank Nifty Call Options Data
According to the monthly options data, the 59,000 strike holds the maximum Call open interest, with 14.03 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 (12.89 lakh contracts) and the 60,000 strike (12.02 lakh contracts).
Maximum Call writing was observed at the 59,000 strike (with the addition of 2.02 lakh contracts), followed by the 60,500 strike (1.15 lakh contracts) and 59,100 strike (84,175 contracts). The maximum Call unwinding was seen at the 58,500 strike, which shed 2.69 lakh contracts, followed by the 58,000 and 58,300 strikes, which shed 47,320 and 20,545 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 16.71 lakh contracts), which can act as a key support level for the index. This was followed by the 58,000 strike (16.18 lakh contracts) and the 57,000 strike (12.29 lakh contracts).
The maximum Put writing was placed at the 58,400 strike (which added 1.1 lakh contracts), followed by the 57,200 strike (95,165 contracts) and the 59,000 strike (91,350 contracts). The maximum Put unwinding was seen at the 58,500 strike, which shed 2.16 lakh contracts, followed by the 57,600 and 58,800 strikes, which shed 1.2 lakh and 46,620 contracts, respectively.
The Nifty Put-Call ratio (PCR), which indicates the mood of the market, fell to 1.02 on November 18, compared to 1.13 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, known as the fear gauge, climbed to 12.1 (up 2.61 percent) after a couple of days of correction, signalling some discomfort for the bulls. However, major discomfort will be seen only if the VIX crosses and sustains above the 13 zone.
A long build-up was seen in 15 stocks. An increase in open interest (OI) and price indicates a build-up of long positions.
11) Long Unwinding (71 Stocks)
71 stocks saw a decline in open interest (OI) along with a fall in price, indicating long unwinding.
12) Short Build-up (109 Stocks)
109 stocks saw an increase in OI along with a fall in price, indicating a build-up of short positions.
13) Short-Covering (17 Stocks)
17 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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