Trade Setup for Today: 15 things to know before the Opening Bell

Stock market trend

The domestic benchmark indices opened higher yesterday and, after initial volatility, demonstrated strong buying interest, with the Nifty closing on a positive note at 25,041.

According to experts, a small positive candle formed on the daily chart, featuring minor upper and lower shadows. Technically, this pattern suggests the formation of a doji-type candle, although not a classical one. Typically, a doji pattern at resistance signals caution for bulls. The short-term trend for Nifty appears to have reversed upwards, and the index is now positioned near the critical resistance level of 25,200. A decisive move above this hurdle could pave the way for further gains toward new all-time highs. Immediate support is at 24,900.

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

Key Levels for Nifty 50:

Support based on pivot points: 24807.2, 24678 and 24473.65
Resistance based on pivot points: 25011.55, 25086.7 and 25291.05
Special Formation: Technically, the index, on a daily scale, has encountered trend line resistance and formed a green candle. As long as, the index remains below the trend line resistance, which is around the 25,150 level, caution is advised on the upside.

Key Levels for Bank Nifty: 

Resistance based on pivot points: 51417.23, 51716.67 and 52540.02

Support based on pivot points: 50593.88, 50069.97, and 49246.62
Special Formation: Technically, on the daily scale, the index is still holding above a piercing line candle. If the index manages to sustain above 51,400 levels, a rally towards 51,800-52,000 could be possible in the short term, according to experts.

Nifty Call Options Data:

According to weekly options data, the 25,000 strike (with 1.38 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 (1.15 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 1.97 crore combined open interest), providing key support for the Nifty. Followed by 23,800 strike, with 81 lakh combined open interest.
FII Funds Flow (Rs crore):

Put-Call Ratio (PCR): The Nifty's PCR shifts to 1.07 from 0.96 in the previous session. 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, again dropped 6% from the previous session, closing at 13.36%, indicating a decrease in market volatility.
Long Build-Up (52 Stocks): 52 stocks saw a rise in open interest (OI) and price, indicating a long build-up.

Long Unwinding (22 Stocks): 22 stocks saw a decline in both open interest and price, suggesting long unwinding.
Short Build-Up (32 Stocks): 32 stocks witnessed an increase in open interest along with a price decrease, indicating a build-up of short positions.

Short Covering (78 Stocks): 78 stocks witnessed short-covering, with a decrease in OI and a rise in price.

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
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