Trade setup for today: 15 things to know before the opening bell

Stock market trend

Indian markets rebounded after a three-day slump, led by gains in consumer staples and banking shares. The NSE Nifty 50 Index edged up by 0.34 percent to close at 24,936.40, while the BSE Sensex rose by 0.46 percent to 81,559.56. ICICI Bank was a major contributor to the Nifty 50’s gain, climbing 2.2 percent. Of the 50 stocks in the index, 25 advanced, while 25 declined.

Nifty has found support around the 38.2 percent retracement level of the previous rise, with a bullish crossover in its momentum indicator (MACD) on the hourly charts. According to experts, the MACD on the daily charts remains in sell mode, suggesting potential consolidation in the short term unless bullish momentum returns, or the downward cycle completes. The index is expected to trade sideways to negative in the short term.

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

Key Levels for Nifty 50:

Support based on pivot points: 24,712.72, 24,573.28, and 24,205.83
Resistance based on pivot points: 25,080.17, 25,308.18, and 25,675.63
Special Formation: The index has formed an "Open Equal to High" candlestick pattern, with a narrow trading range between 25,330 and 25,200.

Key Levels for Bank Nifty:

Resistance based on pivot points: 51,155.5, 51,734.15, and 52,666.9
Support based on pivot points: 50,222.75, 49,868.65, and 48,935.9
Special Formation: On the 1-hour chart, the Nifty Bank index maintains a Higher-High and Higher-Low structure, trading above its upward-sloping 50-period Exponential Moving Average (EMA).
Nifty Call Options Data:

According to weekly options data, the 25,000 strikes (with 1.50 crore combined open interest) had the maximum call and put open interest, forming a key straddle position in the short term.

Heavy call writing was observed at the 25,500 strike (1.11 crore combined open interest), acting as a key resistance level.

Nifty Put Options Data:

On the put side, the maximum open interest was at the 25,000 strike (with 1.5 crore combined open interest), providing key support for the Nifty.
The 23,800 strike followed, with 68 lakh combined open interest.

FII Funds Flow (Rs crore):

Put-Call Ratio (PCR): The Nifty's PCR stands at 0.96. A PCR above 0.7 or approaching 1 generally indicates bullish sentiment, while a ratio below 0.7 or moving towards 0.5 signals a bearish trend.
Nifty Max Pain Point: The Nifty's max pain point is at the 25,000 strike price, indicating the level where option sellers are likely to experience the least loss on expiry.
India VIX: Volatility, as measured by the India VIX, dropped 6% from the previous session, closing at 14.24 percent, signaling a moderation in market volatility.
Long Build-Up (39 Stocks): 39 stocks saw a rise in open interest (OI) and price, indicating a long build-up.

Long Unwinding (36 Stocks): 36 stocks saw a decline in both open interest and price, suggesting long unwinding.

Short Build-Up (60 Stocks): 60 stocks witnessed an increase in open interest along with a price decrease, indicating a build-up of short positions.

Short Covering (47 Stocks): 47 stocks experienced short-covering, with a decrease in OI and a rise in price.

Short Covering (47 Stocks): 47 stocks experienced short-covering, with a decrease in OI and a price rise.

Stocks Under F&O Ban: Securities banned in the F&O segment are those where derivative contracts exceed 95% of the market-wide position limit.

Stocks in F&O ban: ABFRL, BALRAMCHIN, BANDHANBNK, BIOCON, CHAMBLFERT, HINDCOPPER, RBLBANK
Disclaimer: The views and investment tips shared by experts on Moneycontrol are their own and not representative of the website or its management. Moneycontrol advises users to consult certified professionals before making any investment decisions