Monday Trade Setup: Nifty 50 key levels 24,678 forms bullish weekly candlestick pattern

The Nifty 50 index closed with moderate losses on December 6, following five consecutive days of gains. After the Reserve Bank of India’s policy announcement, which was in line with expectations, market participants opted to book profits. The Nifty 50 faced resistance at the 24,700 and 24,800 levels, with expectations that these zones will act as resistance in the upcoming sessions. If these levels are surpassed, the 25,000 mark is a possible target. On the downside, immediate support is expected between 24,500 and 24,400, with 24,200 being the next major support level, according to market experts.

Nifty 50 Key Levels (24,678)

Resistance: 24,733, 24,764, 24,814 (based on pivot points)

Support: 24,633, 24,602, 24,553 (based on pivot points)

The Nifty 50 formed a small red candle on the daily chart, indicating consolidation. The index is holding above key moving averages and is near the upper end of Bollinger Bands. The bullish weekly candlestick pattern suggests continuation of higher highs and higher lows, backed by strong volumes.

Bank Nifty Key Levels (53,510)

Resistance: 53,783, 53,950, 54,221 (based on pivot points)

Support: 53,243, 53,075, 52,805 (based on pivot points)

The Bank Nifty also saw a small bearish candlestick formation, indicating some volatility. However, it remains above key moving averages on both daily and weekly charts, suggesting bullish momentum.

Nifty Call Options Data

Maximum Open Interest: 25,500 strike (75.8 lakh contracts) – key resistance level.

Maximum Call writing observed at the 25,000 strike, indicating strong resistance.

Nifty Put Options Data

Maximum Open Interest: 24,000 strike (55.93 lakh contracts) – major support level.

Maximum Put writing observed at the 24,200 strike, highlighting strong support.

Bank Nifty Call Options Data

Maximum Open Interest: 55,000 strike (18 lakh contracts) – key resistance level.

Maximum Call writing at the 55,000 strike suggests significant resistance.

Bank Nifty Put Options Data

Maximum Open Interest: 52,000 strike (17.64 lakh contracts) – primary support level.

Maximum Put writing at the 53,800 strike suggests strong support.

Funds Flow

Data indicates overall market sentiment and possible direction for trading opportunities.

Put-Call Ratio (PCR)

The PCR for Nifty decreased to 1.03, signaling a shift toward more Call selling, indicating bullish sentiment in the market.

India VIX

The India VIX fell to 14.14, suggesting a reduction in volatility and giving confidence to the bullish outlook.

Long Build-up (87 Stocks)

87 stocks have seen an increase in open interest (OI) and price, indicating long positions.

Long Unwinding (27 Stocks)

27 stocks experienced a decline in OI and price, signaling long unwinding.

Short Build-up (61 Stocks)

61 stocks saw an increase in OI and a price decline, signaling short positions building up.

Short-Covering (49 Stocks)

49 stocks experienced short-covering, with a decrease in OI and price increase.

High Delivery Trades

Stocks with a high percentage of delivery trades indicate investor interest in holding the stock rather than trading it.

Stocks Under F&O Ban

Stocks currently under F&O ban include PVR INOX, RBL Bank, Granules India, and Manappuram Finance.

Disclaimer: Please consult certified experts before making any investment choices.