Trade setup for March 12: Nifty forms a bullish candlestick pattern

The Nifty 50 made a solid comeback on March 11, climbing 183 points from the day's low and closing 38 points higher. It found support at the 22,300 level, although the market breadth remained weak. If the index continues its upward movement in the coming sessions, the 22,700 level could act as a significant resistance. A decisive close above this level may pave the way toward 23,000. Until then, the market may continue its consolidation phase, with support at 22,300-22,250, experts suggest.

Key Levels for the Nifty 50 (22,498)

Resistance (pivot points): 22,524, 22,573, 22,652

Support (pivot points): 22,366, 22,317, 22,238

A bullish candlestick pattern formed with above-average volumes, closing above the 5 and 10-day EMAs. The index needs to close above the 20-day EMA (22,650) for a stronger uptrend. Momentum indicators such as the RSI (40.81) show a slight improvement, but the MACD remains below the zero line.

Key Levels for the Bank Nifty (47,854)

Resistance (pivot points): 47,987, 48,064, 48,188

Support (pivot points): 47,737, 47,660, 47,536

The Bank Nifty dropped 363 points, forming a Doji candlestick pattern. It is below all key moving averages, indicating a bearish sentiment.

Nifty Call Options Data

Maximum Call open interest at the 23,000 strike (1.5 crore contracts), followed by 22,900 (1.08 crore contracts) and 22,700 (95.77 lakh contracts).

Maximum Call writing observed at 22,900, which saw an addition of 41.11 lakh contracts, indicating short-term resistance.

Nifty Put Options Data

Maximum Put open interest was at the 22,200 strike (1.1 crore contracts), followed by 22,000 and 22,400 strikes.

Maximum Put writing observed at 22,200 (48.15 lakh contracts), which suggests strong support at this level.

Bank Nifty Call Options Data

Maximum Call open interest at the 49,000 strike (17.01 lakh contracts), followed by 50,000 and 48,500 strikes.

Maximum Call writing was seen at 48,000 (4.37 lakh contracts), indicating resistance at this level.

Bank Nifty Put Options Data

The 48,000 strike holds the maximum Put open interest (14.61 lakh contracts), followed by 46,000 and 47,000 strikes.

Maximum Put writing was at 47,800 (2.59 lakh contracts), suggesting support at this level.

Funds Flow

Detailed analysis of funds flow indicates the sectors receiving investor attention.

Put-Call Ratio (PCR)

The PCR increased to 1.09 from 0.91, suggesting a shift toward a more bullish sentiment as traders are selling more Put options than Calls.

India VIX (Fear Index)

The India VIX rose 0.63% to 14.07, continuing its upward trend. A sustained level above 14 suggests caution for bulls.

Long Build-up (54 Stocks)

54 stocks saw an increase in open interest (OI) and price, signaling a long position build-up.

Long Unwinding (22 Stocks)

22 stocks saw a decrease in OI and price, indicating long unwinding.

Short Build-up (45 Stocks)

45 stocks witnessed an increase in OI and a price drop, indicating a short position build-up.

Short-Covering (100 Stocks)

100 stocks saw a decrease in OI with an increase in price, indicating short-covering.

High Delivery Trades

Stocks with high delivery volume indicate investor interest, suggesting long-term investment potential.

Stocks Under F&O Ban

Stocks added to F&O ban: IndusInd Bank, SAIL

Stocks retained in F&O ban: BSE, Hindustan Copper, Manappuram Finance

Disclaimer: Please consult with certified experts before making any investment decisions.