Trade setup for November 24: Top 15 things to know before the opening bells

Bulk Deals on November 24

The Nifty 50 snapped its two-day winning streak, falling half a percent on profit booking to close below the 26,100 level, with the sharply rising VIX signalling caution on November 21. However, the overall trend remains positive as the index continued to trade well above all key moving averages, with a positive crossover in momentum indicators. If the index convincingly breaks below the 26,000 mark, the 25,850–25,800 zone will be crucial to watch on the downside. On the other hand, sustaining above this range can drive the index toward 26,250, followed by 26,500, which remain the key upside targets, experts said.

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

1) Key Levels For The Nifty 50 (26,068)

Resistance based on pivot points: 26,148, 26,178, and 26,227

Support based on pivot points: 26,051, 26,021, and 25,973

Special Formation: The Nifty 50 formed a bearish candle with an upper shadow on the daily charts, indicating selling pressure at higher levels, though the volume was lower than in the previous session. Despite this selling, the index still traded well above all key moving averages, with short- and medium-term moving averages trending upward and a slight expansion in the Bollinger Bands. The RSI remained above 60 at 62 with a positive crossover, though it was slightly inclined downward. The MACD maintained a bullish crossover, with the histogram sustaining above the zero line, while the Stochastic RSI stayed in a positive bias. All this indicates continued underlying strength, despite near-term caution.

2) Key Levels For The Bank Nifty (58,868)

Resistance based on pivot points: 59,131, 59,227, and 59,383

Support based on pivot points: 58,818, 58,722, and 58,566

Resistance based on Fibonacci retracement: 59,455, 60,875

Support based on Fibonacci retracement: 58,568, 58,300

Special Formation: The Bank Nifty formed a bearish candle on the daily timeframe after creating a Spinning Top–type pattern in the previous session, declining 0.8 percent. The index continued to sustain above all key moving averages and the midline of the Bollinger Bands. The RSI held above 60 at 63.68 but showed a negative crossover, and the Stochastic RSI also indicated a bearish crossover. The MACD remained above the reference line, although it was inclined downward, with the histogram still above the zero line. All this indicates a potential slowdown in momentum while the broader trend remains intact.

3) Nifty Call Options Data

According to the monthly options data, the 26,500 strike holds the maximum Call open interest (with 1.37 crore contracts). This level can act as a key resistance level for the Nifty in the short term. It was followed by the 26,200 strike (1.24 crore contracts) and 26,100 strike (91.44 lakh contracts).

Maximum Call writing was observed at the 26,100 strike, which saw an addition of 52.05 lakh contracts, followed by the 26,200 and 26,150 strikes, which added 48.47 lakh and 37.73 lakh contracts, respectively. The maximum Call unwinding was seen at the 26,850 strike, which shed 2.46 lakh contracts, followed by the 25,500 and 25,700 strikes, which shed 1.49 lakh and 1.36 lakh contracts, respectively.

4) Nifty Put Options Data

On the Put side, the maximum Put open interest was seen at the 26,000 strike (with 1.1 crore contracts), which can act as a key support level for the Nifty in the short term. It was followed by the 25,700 strike (87.44 lakh contracts) and the 25,900 strike (85.85 lakh contracts).

The maximum Put writing was placed at the 25,700 strike, which saw an addition of 7.76 lakh contracts, followed by the 26,500 and 25,750 strikes, which added 3.11 lakh and 1.47 lakh contracts, respectively. The maximum Put unwinding was seen at the 26,200 strike which shed 40.03 lakh contracts, followed by the 26,000 and 25,900 strikes, which shed 37.79 lakh and 36.94 lakh contracts, respectively.

5) Bank Nifty Call Options Data

According to the monthly options data, the maximum Call open interest was seen at the 60,000 strike, with 15.43 lakh contracts. This can act as a key resistance level for the index in the short term. It was followed by the 59,000 strike (14.46 lakh contracts) and the 59,500 strike (11.14 lakh contracts).

Maximum Call writing was observed at the 59,000 strike (with the addition of 5.33 lakh contracts), followed by the 59,200 strike (4.65 lakh contracts) and 59,100 strike (3.72 lakh contracts). The maximum Call unwinding was seen at the 58,500 strike, which shed 1.64 lakh contracts, followed by the 58,000 and 58,200 strikes, which shed 42,595 and 28,840 contracts, respectively.

6) Bank Nifty Put Options Data

On the Put side, the 57,000 strike holds the maximum Put open interest (with 12.19 lakh contracts), which can act as a key support level for the index. This was followed by the 58,000 strike (12.13 lakh contracts) and the 58,500 strike (11.96 lakh contracts).

The maximum Put writing was placed at the 58,400 strike (which added 2.08 lakh contracts), followed by the 57,500 strike (56,490 contracts) and the 58,800 strike (53,760 contracts). The maximum Put unwinding was seen at the 59,000 strike, which shed 4.67 lakh contracts, followed by the 58,000 and 59,300 strikes, which shed 3.15 lakh and 2.54 lakh contracts, respectively.

7) Funds Flow (Rs crore)

8) Put-Call Ratio

The Nifty Put-Call ratio (PCR), which indicates the mood of the market, fell to 1.03 on November 21, compared to 1.44 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, surged 12.32 percent to 13.63 and climbed sharply above all key moving averages, reaching a five-month high. This signals rising discomfort for bulls. Major discomfort cannot be ruled out if the VIX climbs and sustains above the 15 zone.

10) Long Build-up (7 Stocks)

A long build-up was seen in 7 stocks. An increase in open interest (OI) and price indicates a build-up of long positions.

11) Long Unwinding (99 Stocks)

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

12) Short Build-up (89 Stocks)

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

13) Short-Covering (18 Stocks)

18 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, Sammaan Capital

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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