Trade setup for Friday: Things to know before opening bell

On November 2, 2023, the Indian stock market experienced a rebound after the FOMC (Federal Open Market Committee) outcome, which was seen as dovish by experts. They believe that the bullish trend may continue in the coming sessions as long as the Nifty50 holds above the levels of 19,100-19,000. If this support is maintained, the index could potentially move to the 19,200-19,300 range, which is considered a crucial resistance area. If the index can surpass this resistance and sustain it for a few days, further levels to watch would be in the range of 19,500-19,600. However, until this happens, the index may remain within the range of 18,900-19,200.

On November 2, the BSE Sensex gained 490 points to reach 64,081, while the Nifty50 rose by 144 points to reach 19,133. The technical analysis of the daily candlestick pattern suggests a small bullish pattern with upper and lower shadows.

Jay Thakkar, Head of Alternate Research at Sharekhan by BNP Paribas, pointed out that the immediate support for the Nifty is at 19,100 levels, with 19,000 being the next level of support. The immediate resistance levels are at 19,200 and 19,300. As long as the support levels are held, there is potential for a short-term bounce, but it's important to note that the overall medium-term trend remains negative, so traders are advised to hedge and not be overly aggressive on the long side during this bounce.

Market breadth turned positive, with more stocks advancing compared to those declining. The Nifty Midcap 100 and Smallcap 100 indices both rallied more than 1.3 percent.

The volatility in the market decreased significantly, with the India VIX (fear index) falling by 8.07 percent to 11.08 levels.

Key support and resistance levels for the Nifty were indicated as follows:

Support: 19,082, 19,056, and 19,013.

Resistance: 19,167, 19,193, and 19,235.

For the Nifty Bank, it was noted that the index needed to hold above 42,750 for an upward move towards 43,333 and 43,500, while support levels were seen at 42,750 and 42,500.

In the options market, the Call open interest (OI) was highest at the 19,200 strike, followed by the 19,300 and 19,500 strikes. Call writing was most significant at the 19,200 strike. On the Put side, the 19,100 strike had the highest OI and was seen as a key support level.

The article also provided information on stocks with high delivery percentages, long build-up, long unwinding, short build-up, and short-covering.

Please note that the information provided is based on the data and analysis available at that time and should be considered in the context of the ever-changing stock market conditions.