Trade setup for October 29: Top 15 things to know before the opening bells

Nifty Trade Setup for October 29

The Nifty 50 closed the monthly F&O expiry session flat with a negative bias and formed an indecisive pattern on October 28. Overall, the bulls still hold the upper hand, supported by healthy technical indicators. Hence, experts believe the benchmark index is gradually expected to reclaim 26,100, followed by 26,300 (near its previous record high) in the upcoming sessions, once it starts trading above the psychological 26,000 mark. On the downside, support is placed in the 25,850–25,800 zone.

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

1) Key Levels For The Nifty 50 (25,936)

Resistance based on pivot points: 26,018, 26,072, and 26,161

Support based on pivot points: 25,841, 25,786, and 25,698

Special Formation: The Nifty 50 formed a Doji candlestick pattern, indicating indecision among bulls and bears after a bullish candle formation in the previous session. All key moving averages continued to trend higher, with the 5-day EMA acting as support since the start of the current month. The RSI sustained above the 70 zone despite a normal pullback, while the MACD maintained its upward trajectory with the histogram positioned above the zero line. All these factors indicate that the overall bullish structure remains intact despite ongoing consolidation phase.

2) Key Levels For The Bank Nifty (58,214)

Resistance based on pivot points: 58,307, 58,435, and 58,643

Support based on pivot points: 57,892, 57,764, and 57,556

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

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

Special Formation: The Bank Nifty formed a bullish candle with a lower shadow on the daily timeframe, signalling a positive bias with buying interest emerging at lower levels. The banking index, which gained 100 points, remained above all key moving averages, with these averages trending upward. The RSI, at 72.88, stayed strong, while the MACD continued its upward journey with the histogram above the zero line. All these indicators suggest that the bullish momentum remains intact, and any dips are likely to attract buying interest.

3) Nifty Call Options Data

According to the weekly options data, the maximum Call open interest was seen at the 26,000 strike (with 68.74 lakh contracts). This level can act as a key resistance for the Nifty in the short term. It was followed by the 26,500 strike (52.23 lakh contracts), and the 26,200 strike (49.12 lakh contracts).

Maximum Call writing was observed at the 26,000 strike, which saw an addition of 42.75 lakh contracts, followed by the 26,200 and 26,500 strikes, which added 23.89 lakh and 23.6 lakh contracts, respectively. There was hardly any Call unwinding seen in the 25,200-26,700 strike band.

4) Nifty Put Options Data

On the Put side, the 25,500 strike holds the maximum Put open interest (with 50.61 lakh contracts), which can act as a key support level for the Nifty. It was followed by the 26,000 strike (45.82 lakh contracts) and the 25,400 strike (43.71 lakh contracts).

The maximum Put writing was placed at the 25,400 strike, which saw an addition of 30.57 lakh contracts, followed by the 25,500 and 26,000 strikes, which added 26.93 lakh and 23.85 lakh contracts, respectively. The maximum Put unwinding was seen at the 26,400 strike, which shed 4,425 contracts, followed by the 26,250 strike, which shed 1,800 contracts.

5) Bank Nifty Call Options Data

According to the monthly options data, the 57,000 strike holds the maximum Call open interest, with 10.92 lakh contracts. This can act as a key level for the index in the short term. It was followed by the 58,000 strike (8.61 lakh contracts) and the 60,000 strike (7.45 lakh contracts).

Maximum Call writing was observed at the 58,500 strike (with the addition of 2.36 lakh contracts), followed by the 60,000 strike (1.76 lakh contracts) and 58,000 strike (1.32 lakh contracts). The maximum Call unwinding was seen at the 57,000 strike, which shed 9,485 contracts, followed by the 57,300 and 57,100 strikes, which shed 840 and 700 contracts, respectively.

6) Bank Nifty Put Options Data

On the Put side, the maximum Put open interest was seen at the 58,000 strike (with 14.99 lakh contracts), which can act as a key support level for the index. This was followed by the 57,000 strike (11.41 lakh contracts) and the 56,500 strike (4.36 lakh contracts).

The maximum Put writing was placed at the 58,000 strike (which added 5.85 lakh contracts), followed by the 58,500 strike (1.03 lakh contracts) and the 56,500 strike (96,215 contracts). The maximum Put unwinding was seen at the 57,000 strike which shed 4.73 lakh contracts, followed by the 58,900 and 59,400 strikes, which shed 245 and 105 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 to 0.98 on October 28, compared to 1.07 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, also known as the fear gauge, has been gradually inching higher and attempted to move toward the 13 zone since the previous session but could not sustain that level on a closing basis. It finished at 11.95, up 0.8 percent. Hence, experts noted that the bulls may not be at risk until the VIX sustains above the 13 level.

10) Long Build-up (8 Stocks)

A long build-up was seen in 8 stocks. An increase in open interest (OI) and price indicates a build-up of long positions.

11) Long Unwinding (115 Stocks)

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

12) Short Build-up (8 Stocks)

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

13) Short-Covering (83 Stocks)

83 stocks saw short-covering, meaning a decrease in OI, along with a price increase.

14) High Delivery Trades and High Rollovers

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.

Here are the stocks which saw the highest rollovers on expiry day.

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: Sammaan Capital

Stocks removed from F&O ban: SAIL

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