Trade setup for Tuesday: Nifty 50 falling below the critical 23,500 mark
image for illustrative purpose
As the Nifty 50 continues to show bearish tendencies, investors are watching closely for potential declines and resistance levels. Here's a comprehensive look at what to expect in the market on Tuesday:
Nifty Trade Setup
Current Market Status: The market has been under pressure for seven consecutive days, with the Nifty 50 falling below the critical 23,500 mark and the 200-day Exponential Moving Average (DEMA), ending November 18 with a third of a percent loss.
Key Levels:
If the Nifty 50 sustains below 23,500, the decline could extend to 23,200, aligning with the 50-week EMA.
On the upside, resistance is expected in the 23,600-23,700 range. Until the index climbs and sustains above all key moving averages, the trend is likely to favor the bears.
Pivot Points:
Resistance: 23,568, 23,629, 23,727
Support: 23,372, 23,312, 23,214
Technical Indicators:
The Nifty 50 formed a bearish candlestick pattern on the daily charts, continuing the lower highs-lower lows formation.
RSI (Relative Strength Index) is negative and oversold at 28.60.
MACD (Moving Average Convergence Divergence) shows a negative trend on both daily and weekly timeframes.
Bank Nifty Key Levels
Pivot Points:
Resistance: 50,437, 50,524, 50,666
Support: 50,153, 50,065, 49,923
Fibonacci Retracement:
Resistance: 50,983, 51,643
Support: 49,274, 47,866
Technical Indicators:
Bank Nifty is defending the 200 DEMA (49,910) for the third consecutive session.
MACD remains in sell mode, and RSI is below 50, indicating short-term weakness.
Options Data
Nifty Call Options:
Max Open Interest: 24,000 strike (88.11 lakh contracts) – key resistance level.
Max Call Writing: 24,000 strike (43.31 lakh contracts).
Nifty Put Options:
Max Open Interest: 23,000 strike (63.19 lakh contracts) – key support level.
Max Put Writing: 23,200 strike (31.4 lakh contracts).
Bank Nifty Call Options:
Max Open Interest: 52,000 strike (19.4 lakh contracts) – key resistance level.
Max Call Writing: 50,400 strike (2.07 lakh contracts).
Bank Nifty Put Options:
Max Open Interest: 49,500 strike (19.13 lakh contracts) – key support level.
Max Put Writing: 50,000 strike (2.19 lakh contracts).
Market Sentiment and Indicators
Funds Flow:
FIIs sold shares worth Rs 1,403 crore.
DIIs bought shares worth Rs 2,331 crore.
Put-Call Ratio:
The Nifty PCR fell to 0.85, indicating a bearish sentiment as it drops below 0.88 from the previous session.
India VIX:
Volatility increased, with India VIX rising by 2.66 percent to 15.17, indicating caution among bulls.
Stock Trends
Long Build-up:
29 stocks saw an increase in open interest and price, indicating long positions.
Long Unwinding:
37 stocks saw a decline in open interest and price, indicating long unwinding.
Short Build-up:
71 stocks saw an increase in open interest and fall in price, indicating short positions.
Short-Covering:
43 stocks saw short-covering, with open interest decreasing and prices increasing.
High Delivery Trades:
A high share of delivery trades indicates investing interest in these stocks.
F&O Ban:
No new stocks added.
Retained: Aarti Industries, Aditya Birla Fashion & Retail, GNFC, Granules India, Hindustan Copper.
Investors should remain cautious as the market exhibits bearish trends. Key support and resistance levels, alongside options data, can provide insights for making profitable trades. Always consult with certified experts before making investment decisions.
