Trade setup for Wednesday: The Nifty forms a bullish candlestick pattern

The Nifty 50 continued its upward trajectory for the third consecutive session, rising 0.8% with above-average volumes. On December 3, the index breached key moving averages, indicating a positive trend. A breakout from a falling trendline suggests the Nifty may target immediate resistance at 24,550, followed by a crucial hurdle at 24,800. Support is found at 24,300, with 24,000 as the critical level.

Key Nifty Levels (24,457):

Resistance: 24,483, 24,531, 24,608

Support: 24,329, 24,282, 24,205

Trend: The Nifty formed a bullish candlestick pattern and broke out of the Inverted Head and Shoulders pattern. The RSI is at 55.7, staying in the positive zone.

Bank Nifty Levels (52,696):

Resistance: 52,780, 52,913, 53,129

Support: 52,349, 52,216, 52,001

Trend: The Bank Nifty broke out of two-month consolidation and formed a bullish candlestick pattern. Momentum indicators show positive bias.

Nifty Call Options:

Maximum open interest at the 25,000 strike (1.33 crore contracts), acting as a key resistance level.

Strong Call writing observed at 24,900, with significant unwinding at the 24,300 strike.

Nifty Put Options:

Maximum open interest at the 23,500 strike (1.55 crore contracts), acting as support.

The highest Put writing at 23,500, indicating strong support at this level.

Bank Nifty Call Options:

Maximum open interest at 53,000 strike (15.37 lakh contracts), signaling a resistance level.

Significant Call writing at 52,700, with unwinding seen at the 54,000 strike.

Bank Nifty Put Options:

Maximum open interest at 52,500 strike (15.6 lakh contracts), indicating support.

Heavy Put writing at the 52,500 strike, suggesting strong support at this level.

Funds Flow:

Monitor the inflow and outflow of funds to gauge overall market sentiment.

Put-Call Ratio (PCR):

The PCR rose to 1.29, indicating a bullish sentiment, as traders are favoring Put options over Calls.

India VIX:

The India VIX dropped by 2.23% to 14.37, suggesting reduced market volatility, which is favorable for bulls.

Long Build-up:

84 stocks showed a long build-up, indicating increased buying interest in these stocks.

Long Unwinding:

22 stocks saw long unwinding, signaling profit booking.

Short Build-up:

41 stocks saw short positions being built, indicating bearish sentiment.

Short-Covering:

80 stocks saw short-covering, signaling a potential bullish reversal.

High Delivery Trades:

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

Stocks Under F&O Ban:

Stocks added to the F&O ban include Granules India and Manappuram Finance. RBL Bank remains under the ban.

Disclaimer: Always consult certified experts before making investment decisions.