Trade setup for October 30: Top 15 things to know before the opening bells

Nifty Trade setup for October 30

The Nifty 50 started off the November series on a healthy note, rising 0.45 percent to hit a 13-month closing high on October 29, supported by favourable technical and momentum indicators ahead of the Federal Reserve meeting outcome scheduled for tonight, wherein the central bank cut the benchmark interest rate by 25 basis points to the 3.75–4.00 percent range. The index has consistently held above the 5-day EMA throughout the current month. Experts noted that holding above 26,000 can open the door for a move toward the immediate target of 26,100, followed by 26,300 (near the record high), while the 25,900–25,800 zone can act as a key support area.

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

1) Key Levels For The Nifty 50 (26,054)

Resistance based on pivot points: 26,090, 26,122, and 26,175

Support based on pivot points: 25,985, 25,952, and 25,900

Special Formation: The Nifty 50 formed a bullish candle with a minor upper shadow on the daily charts with above-average volumes, following a Doji candle formation in the previous session. This indicates a positive trend despite some profit booking near the 26,100 hurdle. The index also sustained well above all key moving averages, which continued to trend upward. Meanwhile, the RSI climbed to 72.43, and the MACD trended higher with its histogram sustaining above the zero line. All these factors indicate continued bullish momentum in the market.

2) Key Levels For The Bank Nifty (58,385)

Resistance based on pivot points: 58,460, 58,551, and 58,697

Support based on pivot points: 58,168, 58,078, and 57,931

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 small bullish candle with a long lower shadow on the daily timeframe, signalling a positive mood with buying interest at lower levels. The key moving averages continued their northward movement, while the RSI, at 74.19, also trended higher. The MACD maintained its bullish bias, with the histogram staying above the zero line. All these signals indicate ongoing strength in the banking index.

3) Nifty Call Options Data

According to the weekly options data, the 27,000 strike holds the maximum Call open interest (with 1.09 crore contracts). This level can act as a key resistance for the Nifty in the short term. It was followed by the 26,500 strike (72.01 lakh contracts), and the 26,000 strike (68.77 lakh contracts).

Maximum Call writing was observed at the 27,000 strike, which saw an addition of 24.98 lakh contracts, followed by the 26,500 and 26,200 strikes, which added 19.78 lakh and 15.3 lakh contracts, respectively. The maximum Call unwinding was seen at the 25,900 strike, which shed 10.56 lakh contracts, followed by the 25,950 and 25,800 strikes, which shed 5.48 lakh and 3.47 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 1.05 crore contracts), which can act as a key support level for the Nifty. It was followed by the 25,500 strike (63.34 lakh contracts) and the 25,900 strike (54.77 lakh contracts).

The maximum Put writing was placed at the 26,000 strike, which saw an addition of 59.23 lakh contracts, followed by the 26,100 and 25,900 strikes, which added 27.49 lakh and 27.29 lakh contracts, respectively. There was hardly any Put unwinding seen in the 25,500-27,000 strike band.

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 10.9 lakh contracts. This can act as a key level for the index in the short term. It was followed by the 58,000 strike (8.69 lakh contracts) and the 60,000 strike (7.76 lakh contracts).

Maximum Call writing was observed at the 58,500 strike (with the addition of 1 lakh contracts), followed by the 58,600 strike (97,510 contracts) and 59,000 strike (93,940 contracts). The maximum Call unwinding was seen at the 58,100 strike, which shed 29,155 contracts, followed by the 57,900 and 57,000 strikes, which shed 6,090 and 1,435 contracts, respectively.

6) Bank Nifty Put Options Data

On the Put side, the 58,000 strike holds the maximum Put open interest (with 17.58 lakh contracts), which can act as a key support level for the index. This was followed by the 57,000 strike (11.97 lakh contracts) and the 58,500 strike (5.95 lakh contracts).

The maximum Put writing was placed at the 58,000 strike (which added 2.59 lakh contracts), followed by the 58,500 strike (1.91 lakh contracts) and the 58,300 strike (1.11 lakh contracts). The maximum Put unwinding was seen at the 56,800 strike which shed 5,530 contracts, followed by the 57,100 strike, which shed 5,005 contracts.

7) Funds Flow (Rs crore)

8) Put-Call Ratio

The Nifty Put-Call ratio (PCR), which indicates the mood of the market, jumped to 1.14 on October 29, compared to 0.98 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, trended higher but remained well below the 13 zone, providing comfort for the bulls. The index rose 0.17 percent to 11.97.

10) Long Build-up (108 Stocks)

A long build-up was seen in 108 stocks. An increase in open interest (OI) and price indicates a build-up of long positions.

11) Long Unwinding (10 Stocks)

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

12) Short Build-up (41 Stocks)

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

13) Short-Covering (54 Stocks)

54 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: Sammaan Capital

Stocks removed from F&O ban: Nil

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