Trade setup for Wednesday: Things to know before opening bell

The market took a breather following a three-day run-up, ending flat with a slight negative bias while holding above the 19,400 level. The question remains: will it continue in a rangebound fashion or make further gains beyond the 50-day EMA in the days ahead?

Market experts suggest that the rangebound trade is likely to persist, with 19,400 being a critical level that could influence the market's direction. If the index maintains this level, it may surpass 19,450 (the 50-day EMA - exponential moving average) and face resistance around 19,500-19,600. On the flip side, 19,300 is expected to act as immediate support for the Nifty50.

The BSE Sensex fell 16 points to 64,942 on November 7, while the Nifty50 declined five points to 19,407. The daily charts displayed a Doji candlestick pattern and Tweezer Top pattern, indicating a potential reversal. The next session's movements will be crucial.

The technical analysis suggests that a Doji formation near swing highs or lows often signals impending trend reversals. This formation, alongside the long bullish candle from Monday, implies a likelihood of range-bound market movement. The daily timeframe chart still shows a larger degree of lower tops and bottoms, with no confirmation of a lower top reversal pattern at the highs.

In terms of support and resistance levels, experts suggest that the market could encounter strong resistance around 19,500-19,600 in the short term, with immediate support at 19,320.

Meanwhile, the broader markets continued their upward trend for the fourth consecutive session, with the Nifty Midcap 100 and Smallcap 100 indices gaining 0.3 percent and 0.75 percent, respectively. Market breadth slightly favored the bulls.

Here are 15 data points to consider for your trading decisions:

Key support and resistance levels on Nifty:

Support: 19,350, 19,328, 19,292

Resistance: 19,422, 19,445, 19,481

Nifty Bank:

Bank Nifty formed a bullish candlestick pattern and maintained its upward journey for the fourth consecutive day.

Support: 43,410, 43,288, 43,092

Resistance: 43,804, 43,926, 44,123

Call options data:

Maximum Call open interest at 19,500 strike, followed by 19,600 and 19,400 strikes.

Maximum Call writing at 19,400 strike.

Maximum Call unwinding at 19,300 strike.

Put option data:

Maximum Put open interest at 19,300 strike, followed by 19,200 and 19,000 strikes.

Meaningful Put writing at 19,000 strike.

Put unwinding at 18,800 strike.

Stocks with high delivery percentage:

Oracle Financial, Syngene International, Hindustan Unilever, Balkrishna Industries, and ITC had the highest delivery among F&O stocks.

Long build-up in 50 stocks, including Indian Oil Corporation, Trent, ONGC, Escorts Kubota, and Hindustan Petroleum Corporation.

Long unwinding in 38 stocks, based on the OI percentage, including Bharat Forge, Can Fin Homes, JK Cement, GNFC, and MRF.

Short build-up in 52 stocks, including Apollo Tyres, Bata India, Bank of Baroda, Atul, and Tata Chemicals.

Short-covering in 45 stocks, based on the OI percentage, including Abbott India, Crompton Greaves Consumer Electricals, State Bank of India, Federal Bank, and ICICI Lombard General Insurance Company.

Results to watch on November 8:

Lupin, Tata Power Company, Oil India, 63 Moons Technologies, Bata India, BHEL, CESC, Mazagon Dock Shipbuilders, MCX India, MTAR Technologies, Nazara Technologies, The New India Assurance Company, Patanjali Foods, Power Finance Corporation, Pidilite Industries, PI Industries, Raymond, Shree Renuka Sugars, Samhi Hotels, United Spirits, and Welspun Corp will release September quarter earnings on November 8.

Stocks in the news:

SJVN received a Letter of Intent for the purchase of 200 MW solar power from Uttarakhand Power Corporation.

Apollo Tyres recorded consolidated profit for Q2 FY24.

Cummins India reported a 30 percent YoY increase in standalone net profit for Q2 FY24.

Power Grid Corporation of India reported a 3.6 percent YoY increase in consolidated profit for Q2 FY24.

Shree Cement recorded standalone net profit for Q2 FY24.

Indian Railway Catering and Tourism Corporation registered a 30.4 percent YoY increase in standalone net profit for Q2 FY24.

Fund Flow:

Foreign institutional investors sold shares worth Rs 497.21 crore, while domestic institutional investors bought Rs 700.28 crore worth of stocks on November 7, according to provisional data from the National Stock Exchange.

Stock under F&O ban on NSE:

GNFC (Gujarat Narmada Valley Fertilizers and Chemicals) remains on NSE's F&O ban list for November 8.

Disclaimer: Please seek professional advise for investment