Trade Setup for Monday: Things to know before Opening Bell
The stock market has been on an uptrend for two consecutive sessions. The Nifty index is facing a crucial hurdle around the 19,200-19,300 area,
image for illustrative purpose
here's a summary of key points to consider before the opening bell on Monday, November 6, 2023:
The stock market has been on an uptrend for two consecutive sessions.
The Nifty index is facing a crucial hurdle around the 19,200-19,300 area, which previously acted as strong support and later saw a sharp rally in September.
There is ongoing indecisiveness among buyers and sellers, as indicated by the formation of a Spinning Top candlestick pattern on the daily charts.
Key Support and Resistance Levels:
Nifty is expected to trade in the range of 19,000 to 19,300 with a sideways to a positive bias.
A decisive breakthrough above 19,300 may lead to an advance towards 19,500, while a fall below 19,000 could trigger more selling towards 18,800-18,700.
The index is currently near the resistance zone of multiple moving averages (20, 100, and 50-day EMA).
Nifty Bank:
Bank Nifty formed a Doji candlestick pattern, indicating uncertainty in the market direction.
The index has risen above the 200-day EMA and is now facing potential resistance around 42,500.
Key support and resistance levels for the Bank Nifty are provided.
Call and Put Options Data:
The 19,300 strike has the maximum Call open interest (OI), acting as a key resistance for the Nifty.
Maximum Call writing was seen at the 19,300 strike, while Call unwinding was observed at the 19,100 strike.
On the Put side, the 19,200 strike has the maximum open interest, serving as key support for the Nifty.
Meaningful Put writing occurred at the 19,200 strike, while Put unwinding was observed at the 18,300 strike.
Stocks to Watch:
Stocks with high delivery percentage, indicating investor interest, include ICICI Prudential Life Insurance, ITC, Petronet LNG, Indian Hotels, and Bajaj Auto.
There was a long build-up in 55 stocks and long unwinding in 18 stocks.
Short build-up was observed in 35 stocks, while 73 stocks saw short-covering.
Earnings and Corporate News:
Quarterly earnings of several companies, including Divis Laboratories, Bharat Forge, Hindustan Petroleum Corporation, FSN E-Commerce Ventures (Nykaa), and others, are scheduled for November 6.
Companies like SBI, Bank of Baroda, PB Fintech, Cello World, InterGlobe Aviation, and Bank of India reported financial results.
Fund Flow and FII/DII Data:
Foreign institutional investors (FIIs) sold shares worth Rs 12.43 crore, while domestic institutional investors (DIIs) bought stocks worth Rs 402.69 crore on November 3.
Stock Under F&O Ban on NSE:
GNFC (Gujarat Narmada Valley Fertilizers and Chemicals) is on the F&O ban list for November 6.
Please note that this information is for reference, and it's essential to consult with financial experts and conduct your own analysis before making investment decisions.
