Trade Setup for Wednesday: Nifty remains in the upper range of the Bollinger Bands; signals a positive trend

The Nifty 50 index ended its two-day winning streak with a slight decline of 0.1% amid some market volatility on November 26. Despite this, it remains in the upper range of the Bollinger Bands, which signals a positive trend. The index faced resistance at the 100-day EMA (Exponential Moving Average) in the 24,300-24,350 range for the second consecutive session. A decisive break above this level could pave the way for an upward move, targeting 24,550. However, the 24,000-24,100 range is expected to act as strong support.

1) Key Levels for Nifty 50 (24,195)

Resistance: 24,304, 24,356, 24,439

Support: 24,138, 24,086, 24,003

Special Formation: A Bearish Belt Hold candlestick pattern has appeared on the daily charts, indicating a possible bearish reversal, though confirmation is needed in the next session. Despite this, the index remains above the midline of the Bollinger Bands and the 20-day EMA, which is a positive sign.

2) Key Levels for Bank Nifty (52,192)

Resistance: 52,461, 52,592, 52,805

Support: 52,037, 51,906, 51,693

Special Formation: A bearish candlestick pattern was formed on the Bank Nifty charts, with a minor fall of 16 points, but it still maintains a higher highs-higher lows formation, staying above key moving averages. The index has encountered resistance near the 52,600 level, a crucial point for further upward movement.

3) Nifty Call Options Data

The maximum open interest is at the 25,000 strike (1.18 crore contracts), which could act as a short-term resistance. Key levels for call writing are 24,400, 25,000, and 24,500.

4) Nifty Put Options Data

The maximum open interest on the put side is at the 23,500 strike (88.27 lakh contracts), providing a significant support level. Key put writing levels include 24,050, 24,000, and 23,700.

5) Bank Nifty Call Options Data

The maximum open interest on calls is at the 54,000 strike, followed by 53,000 and 53,500 strikes, which could act as short-term resistance levels. The maximum call writing is at 54,000, with key levels of resistance at 53,000 and 53,300.

6) Bank Nifty Put Options Data

The maximum open interest on puts is at the 50,000 strike (42.74 lakh contracts), with major support levels at 51,000 and 52,000 strikes.

7) Funds Flow

Continuing positive foreign institutional investments with a net purchase of Rs 1,158 crore.

8) Put-Call Ratio (PCR)

The PCR for Nifty dropped to 1.04 from 1.11, reflecting a slight shift toward a bearish sentiment.

9) India VIX

The India VIX, a measure of market volatility, stayed almost flat at 15.31. A VIX below 14 is considered conducive for a strong market rally.

10) Long Build-up

28 stocks saw an increase in open interest along with price appreciation, indicating long positions being built.

11) Long Unwinding

45 stocks experienced a decrease in open interest and price, suggesting long unwinding.

12) Short Build-up

41 stocks saw an increase in open interest along with price declines, indicating short positions being taken.

13) Short-Covering

68 stocks saw short-covering, with a reduction in open interest and a price increase.

14) High Delivery Trades

Stocks with a high percentage of delivery trades indicate investor interest, suggesting long-term investment rather than short-term trading.

15) Stocks Under F&O Ban

No new stocks were added to the F&O ban list, and there were no stocks retained or removed from the list.

Disclaimer: The views and investment tips are based on expert opinions and should be verified with certified professionals before making investment decisions.