Monday Trade Setup: Bullish Marubozu candlestick observed previous week signals a potential positive market

The Nifty 50 made a strong comeback on November 29, recovering from a sharp decline and starting the December series with nearly a 1% gain. However, the key factor to watch moving forward is whether this momentum can be sustained. A Bullish Marubozu Opening candlestick pattern was observed on the daily charts. The index faces a significant resistance at 24,350, which it has struggled to surpass over the past four sessions. If it manages to stay above this level, it could pave the way for targets at 24,550 and 24,700. Otherwise, as long as the index remains below 24,350, consolidation is expected, with support at 23,900, experts say.

Here's a breakdown of key points to guide your trades:

Nifty Key Levels:

Resistance: 24,182, 24,244, and 24,343

Support: 23,982, 23,921, and 23,821

Bullish Candlestick Formation: The Nifty formed a Bullish Harami pattern, suggesting a potential bullish reversal. The index has moved above short-term moving averages, though the weekly trend remains cautious.

Bank Nifty Key Levels:

Resistance: 52,152, 52,250, and 52,407

Support: 51,838, 51,741, and 51,584

Bullish Candlestick Pattern: The Bank Nifty remains above key moving averages and shows a positive trend, though there’s a Doji pattern on the weekly chart, signaling indecision.

Options Data – Nifty:

Call Options: Maximum open interest at the 25,000 strike (95.68 lakh contracts), indicating resistance at this level.

Put Options: Maximum open interest at the 23,500 strike (70.59 lakh contracts), acting as a support level.

Bank Nifty Options Data:

Call Options: Maximum open interest at the 54,000 strike, marking it as a key resistance.

Put Options: Maximum open interest at the 52,000 strike, suggesting support.

Funds Flow:

Monitor inflows to gauge market sentiment.

Put-Call Ratio (PCR):

PCR stands at 1.08, indicating a bullish sentiment as more Puts are being written than Calls.

India VIX:

VIX declined to 14.43, signaling lower volatility and giving some comfort to bulls.

Stock Data:

96 stocks saw a long build-up, signaling potential for upward movement.

34 stocks saw a short build-up, indicating bearish sentiment in those names.

F&O Ban:

No new stocks are added or removed from the F&O ban list.

Stay informed about key technical levels and market sentiment as they will guide your trading decisions on Monday.