Trade setup for November 28: Top 15 things to know before the opening bells

Nifty Trade setup for November 28

The benchmark Nifty 50 finally hit a fresh record high above 26,300 after a 14-month consolidation phase, and managed to close flat with a positive bias on November 27. The expansion in Bollinger Bands, along with constructive technical and momentum indicators and a falling VIX, signalled a positive market mood. Experts expect the index to march toward 26,500–26,600 in the upcoming sessions, though intermittent consolidation is likely. Support is placed at 26,000–26,100, followed by 25,900–25,850 as the crucial support zone.

1) Key Levels For The Nifty 50 (26,216)

Resistance based on pivot points: 26,287, 26,327, and 26,391

Support based on pivot points: 26,158, 26,119, and 26,054

Special Formation: The Nifty 50 formed a bearish candle with upper and lower shadows on the daily timeframe, signalling consolidation after the breakout. However, the index continued its higher-high and higher-low structure, while key moving averages trended upward. The RSI at 63.45 sustained above its reference line, with a positive crossover in the Stochastic RSI. The MACD showed a bullish crossover with further strengthening in the histogram. All this indicates ongoing bullish momentum despite near-term consolidation.

2) Key Levels For The Bank Nifty (59,737)

Resistance based on pivot points: 59,840, 59,921, and 60,053

Support based on pivot points: 59,578, 59,497, and 59,365

Resistance based on Fibonacci retracement: 60,906, 62,339

Support based on Fibonacci retracement: 59,234, 58,838

Special Formation: The Bank Nifty outperformed the benchmark Nifty 50, rising 0.35 percent. It formed a bullish candle with an upper shadow on the daily charts and maintained a higher-top, higher-bottom formation, signalling continuation of its upward journey. The index hit a fresh high of 59,866 and closed near the upper line of the Bollinger Bands, which expanded on both sides. The RSI at 72.05, along with the Stochastic RSI and MACD, maintained bullish crossovers, with the MACD histogram climbing above the zero line. All this indicates strong bullish momentum and the potential for further upside.

3) Nifty Call Options Data

According to the weekly options data, the 26,500 strike holds the maximum Call open interest (with 1.06 crore contracts). This level can act as a key resistance level for the Nifty in the short term. It was followed by the 26,300 strike (93.16 lakh contracts) and 26,600 strike (83.88 lakh contracts).

Maximum Call writing was observed at the 26,600 strike, which saw an addition of 45.25 lakh contracts, followed by the 26,300 and 26,400 strikes, which added 41.82 lakh and 29.21 lakh contracts, respectively. The maximum Call unwinding was seen at the 26,000 strike, which shed 10.61 lakh contracts, followed by the 26,100 and 26,050 strikes, which shed 8.46 lakh and 3.56 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 1.53 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 (83.6 lakh contracts) and the 25,900 strike (80.56 lakh contracts).

The maximum Put writing was placed at the 26,250 strike, which saw an addition of 12.61 lakh contracts, followed by the 25,700 and 25,650 strikes, which added 9.06 lakh and 9.01 lakh contracts, respectively. The maximum Put unwinding was seen at the 26,100 strike, which shed 15.12 lakh contracts, followed by the 26,000 and 25,950 strikes, which shed 15.07 lakh and 7.14 lakh contracts, respectively.

5) Bank Nifty Call Options Data

According to the monthly options data, the maximum Call open interest was seen at the 58,500 strike, with 12.91 lakh contracts. This can act as a key level for the index in the short term. It was followed by the 60,000 strike (9.72 lakh contracts) and the 62,000 strike (6.97 lakh contracts).

Maximum Call writing was observed at the 60,000 strike (with the addition of 1.89 lakh contracts), followed by the 59,900 strike (70,735 contracts) and 60,100 strike (47,005 contracts). The maximum Call unwinding was seen at the 59,500 strike, which shed 80,815 contracts, followed by the 59,000 and 59,400 strikes, which shed 70,315 and 60,130 contracts, respectively.

6) Bank Nifty Put Options Data

On the Put side, the 58,500 strike holds the maximum Put open interest (with 20.6 lakh contracts), which can act as a key support level for the index. This was followed by the 59,000 strike (11.7 lakh contracts) and the 59,500 strike (7.12 lakh contracts).

The maximum Put writing was placed at the 60,000 strike (which added 2.95 lakh contracts), followed by the 59,700 strike (1.56 lakh contracts) and the 59,600 strike (90,510 contracts). The maximum Put unwinding was seen at the 59,400 strike, which shed 21,245 contracts, followed by the 58,600 and 59,100 strikes, which shed 17,080 and 14,280 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 1.16 on November 27, compared to 1.45 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, extended its downtrend for the fourth consecutive session and dropped below all key moving averages, falling 1.52 percent to 11.79. This signals low volatility and provides comfort to the bulls.

10) Long Build-up (50 Stocks)

A long build-up was seen in 50 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 (110 Stocks)

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

13) Short-Covering (27 Stocks)

27 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