Trade setup for November 27: Top 15 things to know before the opening bells

Nifty Trade setup for November 27

The Nifty 50 rebounded sharply on November 26 after three days of weakness, recording the biggest single-day rally of 1.24 percent since June, backed by broad-based buying and marking a robust start to the December series. The index, after taking support at the 20-day EMA, remained above all key moving averages with improving momentum indicators, closing at a fresh 52-week high. Hence, as long as the 26,000 support holds, a rally toward the record high near 26,300, followed by 26,500, is possible in the upcoming sessions despite intermittent consolidation, according to experts.

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

1) Key Levels For The Nifty 50 (26,205)

Resistance based on pivot points: 26,230, 26,318, and 26,460

Support based on pivot points: 25,946, 25,858, and 25,716

Special Formation: The Nifty 50 formed a big green candle on the daily charts, almost engulfing all the previous four candles, signalling a strong position for the bulls. The index climbed back above the 10-day EMA and sustained above short- as well as medium-term moving averages, continuing the larger pattern of higher highs and higher lows. The RSI climbed to 63.21 with a positive crossover, while the MACD also turned bullish with the histogram rising above the zero line. All this indicates strengthening momentum and increasing bullish dominance.

2) Key Levels For The Bank Nifty (59,528)

Resistance based on pivot points: 59,584, 59,766, and 60,060

Support based on pivot points: 58,994, 58,812, and 58,517

Resistance based on Fibonacci retracement: 60,851, 62,255

Support based on Fibonacci retracement: 58,998, 58,647

Special Formation: The Bank Nifty also showed Nifty-like performance, rising 1.2 percent and forming a long bullish candle on the daily timeframe. The index sustained well above all key moving averages, maintaining the higher top–higher bottom formation. The RSI turned bullish at 70.25, while the MACD and Stochastic RSI are on the verge of a breakout on the higher side, with the histogram flattening out. All this indicates a continuation of positive momentum and the likelihood of further upside.

3) Nifty Call Options Data

According to the weekly options data, the maximum Call open interest was seen at the 26,500 strike (with 79.47 lakh contracts). This level can act as a key resistance level for the Nifty in the short term. It was followed by the 27,000 strike (73.19 lakh contracts) and 26,200 strike (65.44 lakh contracts).

Maximum Call writing was observed at the 26,700 strike, which saw an addition of 20.92 lakh contracts, followed by the 27,000 and 26,500 strikes, which added 20.4 lakh and 18.81 lakh contracts, respectively. The maximum Call unwinding was seen at the 26,000 strike, which shed 20.49 lakh contracts, followed by the 25,900 and 25,950 strikes, which shed 12.95 lakh and 8.95 lakh contracts, respectively.

4) Nifty Put Options Data

On the Put side, the 26,000 strike holds the maximum Put open interest (with 1.68 crore contracts), which can act as a key support level for the Nifty in the short term. It was followed by the 26,100 strike (98.72 lakh contracts) and the 25,900 strike (77.55 lakh contracts).

The maximum Put writing was placed at the 26,000 strike, which saw an addition of 1.19 crore contracts, followed by the 26,100 and 26,200 strikes, which added 77.99 lakh and 59.89 lakh contracts, respectively. There was hardly any Put unwinding seen in the 25,600-27,100 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 13.06 lakh contracts. This can act as a key level for the index in the short term. It was followed by the 60,000 strike (7.83 lakh contracts) and the 59,000 strike (7.22 lakh contracts).

Maximum Call writing was observed at the 59,500 strike (with the addition of 1.6 lakh contracts), followed by the 61,500 strike (1.45 lakh contracts) and 60,000 strike (1.44 lakh contracts). The maximum Call unwinding was seen at the 59,000 strike, which shed 1.02 lakh contracts, followed by the 58,900 and 59,200 strikes, which shed 30,835 and 28,525 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 20.11 lakh contracts), which can act as a key support level for the index. This was followed by the 59,000 strike (11.51 lakh contracts) and the 58,000 strike (7.92 lakh contracts).

The maximum Put writing was placed at the 59,500 strike (which added 3.95 lakh contracts), followed by the 59,000 strike (3.61 lakh contracts) and the 59,400 strike (2.02 lakh contracts). There was hardly any Put unwinding seen in the 58,000-61,750 strike band.

7) Funds Flow (Rs crore)

8) Put-Call Ratio

The Nifty Put-Call ratio (PCR), which indicates the mood of the market, spiked to 1.45 on November 26 (the highest level since September 20, 2024), compared to 0.95 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, the fear index, dropped below 12 to 11.97, down 2.25 percent, and continued its downtrend for the third consecutive session from the 13.85 level, providing comfort for the bulls. The index also fell below short-term moving averages; hence, sustaining below the 12 zone can give further confidence to the bulls.

10) Long Build-up (124 Stocks)

A long build-up was seen in 124 stocks. An increase in open interest (OI) and price indicates a build-up of long positions.

11) Long Unwinding (1 Stock)

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

12) Short Build-up (4 Stocks)

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

13) Short-Covering (84 Stocks)

84 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: Nil

Stocks removed from F&O ban: Nil