Trade setup for November 3: Top 15 things to know before the opening bells

Nifty Trade setup for November 3

The Nifty 50 extended its downward journey for the second consecutive session, losing 0.6 percent on October 31 and 1.5 percent from the week’s high due to profit booking. Momentum indicators signaled some caution in the short term, especially after a sharp rally in October. However, the overall trend remains positive as long as the index defends the 25,500–25,400 support zone. A breakdown below this area could strengthen the bears, whereas holding above it amid the current nervousness and consolidation could push the index back toward 25,900–26,000, followed by a hurdle at 26,100, according to experts.

1) Key Levels For The Nifty 50 (25,722)

Resistance based on pivot points: 25,888, 25,946, and 26,038

Support based on pivot points: 25,703, 25,646, and 25,553

Special Formation: The Nifty 50 formed a long bearish candle with an upper shadow on the daily timeframe, indicating selling pressure at higher levels. The index slipped below its 10-day EMA, though it still held above the 20-, 50-, and 100-day EMAs. It also fell below a 23.6 percent Fibonacci retracement of its October rally. Meanwhile, the RSI (57.84) and Stochastic RSI sustained a bearish crossover, and the MACD is on the verge of a negative crossover with the histogram showing fading momentum. Together, these indicators suggest short-term caution.

2) Key Levels For The Bank Nifty (57,776)

Resistance based on pivot points: 58,124, 58,266, and 58,494

Support based on pivot points: 57,668, 57,526, and 57,298

Resistance based on Fibonacci retracement: 58,739, 60,148

Support based on Fibonacci retracement: 57,394, 56,662

Special Formation: The Bank Nifty also formed a bearish candle with a long upper shadow on the daily chart for the second consecutive session, accompanied by above-average volumes—signaling weakness at higher levels. The index fell below its 10-day EMA and approached the previous record high (57,628) and last week’s low (57,482), though it continues to trade comfortably above the 20-, 50-, and 100-day EMAs. The RSI (62.29) and Stochastic RSI both showed bearish crossovers, while the MACD is nearing a negative crossover with a declining histogram. All these factors point to potential short-term weakness.

3) Nifty Call Options Data

According to the weekly options data, the 26,000 strike holds the maximum Call open interest (with 2.13 crore contracts). This level can act as a key resistance for the Nifty in the short term. It was followed by the 25,900 strike (1.33 crore contracts), and the 26,500 strike (1.33 crore contracts).

Maximum Call writing was observed at the 25,800 strike, which saw an addition of 84.95 lakh contracts, followed by the 25,900 and 26,000 strikes, which added 60.43 lakh and 49.9 lakh contracts, respectively. The maximum Call unwinding was seen at the 25,200 strike, which shed 11,850 contracts, followed by the 25,400 and 25,300 strikes, which shed 9,450 and 1,875 contracts, respectively.

4) Nifty Put Options Data

On the Put side, the maximum Put open interest was seen at the 25,500 strike (with 83.36 lakh contracts), which can act as a key support level for the Nifty. It was followed by the 25,700 strike (81.26 lakh contracts) and the 25,800 strike (73.15 lakh contracts).

The maximum Put writing was placed at the 25,700 strike, which saw an addition of 28.7 lakh contracts, followed by the 25,750 and 25,800 strikes, which added 22.91 lakh and 18.47 lakh contracts, respectively. The maximum Put unwinding was seen at the 26,000 strike, which shed 25.08 lakh contracts, followed by the 25,900 and 25,850 strikes, which shed 22.01 lakh and 12.74 lakh contracts, respectively.

5) Bank Nifty Call Options Data

According to the monthly options data, the maximum Call open interest was seen at the 57,000 strike, with 10.78 lakh contracts. This can act as a key level for the index in the short term. It was followed by the 58,000 strike (10.68 lakh contracts) and the 60,000 strike (10.19 lakh contracts).

Maximum Call writing was observed at the 60,000 strike (with the addition of 1.1 lakh contracts), followed by the 58,000 strike (1.04 lakh contracts) and 59,000 strike (81,935 contracts). The maximum Call unwinding was seen at the 58,600 strike, which shed 30,485 contracts, followed by the 59,400 and 58,300 strikes, which shed 18,305 and 16,170 contracts, respectively.

6) Bank Nifty Put Options Data

On the Put side, the 58,000 strike holds the maximum Put open interest (with 17.16 lakh contracts), which can act as a key level for the index. This was followed by the 57,000 strike (11.91 lakh contracts) and the 58,500 strike (4.91 lakh contracts).

The maximum Put writing was placed at the 57,900 strike (which added 32,515 contracts), followed by the 57,000 strike (29,365 contracts) and the 57,500 strike (23,205 contracts). The maximum Put unwinding was seen at the 58,100 strike which shed 34,545 contracts, followed by the 58,000 and 58,500 strikes, which shed 32,095 and 28,420 contracts, respectively.

7) Funds Flow (Rs crore)

8) Put-Call Ratio

The Nifty Put-Call ratio (PCR), which indicates the mood of the market, dropped further to 0.64 on October 31 (the lowest level since September 26), compared to 0.75 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, continued to rise and climbed above the 12 level, closing 0.7 percent higher at 12.15 on Friday—its highest level since August 28 this year. The uptick signals growing caution among bulls. A decisive move and sustained trade above the 13 mark could further unsettle bullish sentiment.

10) Long Build-up (33 Stocks)

A long build-up was seen in 33 stocks. An increase in open interest (OI) and price indicates a build-up of long positions.

11) Long Unwinding (50 Stocks)

50 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 (21 Stocks)

21 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