Trade setup for Tuesday: Bollinger Bands, signaling a positive trend

Nifty 50 Outlook: The Nifty 50 index continued its upward momentum, rallying over 1% on November 25, breaking into the upper band of the Bollinger Bands, signaling a positive trend. Despite the potential for volatility during the F&O expiry week, the index is likely to target the 24,400-24,500 range in upcoming sessions. Key support levels are at 24,000, followed by the 23,950-23,850 zone.

Key Levels for Nifty 50:

Current Level: 24,222

Resistance: 24,319, 24,370, and 24,453 (based on pivot points)

Support: 24,154, 24,103, and 24,020 (based on pivot points)

Special Formation: A small bearish candlestick pattern with upper and lower shadows, resembling a High Wave pattern, indicates indecision following the recent rally. The index has climbed above the 20-day EMA, and the RSI at 51 shows a positive crossover within the upper band.

Key Levels for Bank Nifty:

Resistance: 52,317, 52,448, and 52,661 (based on pivot points)

Support: 51,892, 51,760, and 51,547 (based on pivot points)

Resistance (Fibonacci retracement): 52,679, 53,458

Support (Fibonacci retracement): 51,262, 50,266

Special Formation: Bank Nifty outperformed, rising 2.1% to 52,208, forming a bullish candlestick pattern. It climbed above all key moving averages and traded above the 50% Fibonacci retracement with robust volumes, signaling a healthy trend. The RSI positive crossover reached 56.7.

Nifty Call Options Data:

Maximum Call Open Interest: 25,000 strike (1.03 crore contracts), acting as a key resistance level.

Call Writing: Significant at 25,200 (36.59 lakh contracts), 24,300 (34.78 lakh contracts), and 25,000 (29.66 lakh contracts).

Call Unwinding: Seen at 24,000 (20.36 lakh contracts), 23,900 (15.35 lakh contracts), and 23,800 (13.32 lakh contracts).

Nifty Put Options Data:

Maximum Put Open Interest: 23,000 strike (84.6 lakh contracts), acting as a key support level.

Put Writing: Significant at 24,300 (46.64 lakh contracts), 24,200 (29.07 lakh contracts), and 24,000 (25.35 lakh contracts).

Put Unwinding: Seen at 22,950 (4.38 lakh contracts), 23,050 (4.14 lakh contracts), and 23,300 (3.44 lakh contracts).

Bank Nifty Call Options Data:

Maximum Call Open Interest: 54,000 strike (32.81 lakh contracts), acting as a key resistance level.

Call Writing: Significant at 54,500 (13.28 lakh contracts), 52,200 (9.59 lakh contracts), and 52,600 (7.69 lakh contracts).

Call Unwinding: Seen at 51,500 (11.99 lakh contracts), 51,000 (7.54 lakh contracts), and 52,000 (4.52 lakh contracts).

Bank Nifty Put Options Data:

Maximum Put Open Interest: 50,000 strike (38.34 lakh contracts), acting as a key support level.

Put Writing: Significant at 50,000 (18.56 lakh contracts), 51,500 (13.28 lakh contracts), and 52,000 (12.31 lakh contracts).

Put Unwinding: Seen at 54,000 (29,820 contracts), 53,000 (29,280 contracts), and 53,500 (23,580 contracts).

Funds Flow (Rs crore):

Detailed data on funds flow provided in the article.

Put-Call Ratio:

The Nifty Put-Call ratio (PCR) fell to 1.11 on November 25 from 1.19 in the previous session, indicating a slightly bearish sentiment. A PCR higher than 0.7 or above 1 suggests a bullish sentiment, while below 0.7 or towards 0.5 indicates bearish sentiment.

India VIX:

The India VIX fell by 4.94% to 15.30 from 16.10, but remains in higher zones. A decisive drop below 14 could strengthen the bulls further.

Long Build-up:

75 stocks witnessed a long build-up, indicating increased open interest (OI) and price.

Long Unwinding:

4 stocks saw a decline in OI along with a fall in price, indicating long unwinding.

Short Build-up:

20 stocks experienced a short build-up, showing increased OI and a fall in price.

Short-Covering:

83 stocks saw short-covering, with a decrease in OI and an increase in price.

High Delivery Trades:

A list of stocks with a high share of delivery trades, indicating investor interest.

Stocks Under F&O Ban:

No new additions.

Retained: Aarti Industries, GNFC, Granules India.

Removed: Adani Enterprises, Hindustan Copper, Indraprastha Gas, National Aluminium Company.

Disclaimer: The views and investment tips expressed by experts are their own and not those of Moneycontrol. Users should check with certified experts before making any investment decisions.

Author: Sunil Shankar Matkar Tags: #Bank Nifty, #FuturesnOptions, #Market Edge, #Nifty, #Technicals, #Trade Setup Published: Nov 25, 2024, 09:58 PM