Trade Setup for November 2: Top 15 things to know before the opening bell
The 22,800-22,900 range is expected to act as a crucial support zone. As long as the Nifty 50 sustains above this level, a further rally towards 23,200 cannot be ruled out. Beyond that, the 23,500-23,600 range is likely to emerge as the next crucial resistance.
The Nifty 50 bulls extended their winning streak for another session despite elevated oil prices, with the index rising half a percent to climb above the psychological 23,000 mark on October 30. The index continued to trade well above its short-term moving averages, while improving momentum indicators provided further support to the rally. According to market experts, the 22,800-22,900 range is expected to act as a crucial support zone.
As long as the index sustains above this level, a further rally towards 23,200, the October swing high, cannot be ruled out. Beyond that, the 23,500-23,600 range is likely to emerge as the next crucial resistance zone. Here are 15 data points we have collated to help you spot profitable trades: 1) Key Levels For The Nifty 50 (23,053) Resistance based on pivot points: 23,107, 23,157, and 23,238 Support based on pivot points: 22,944, 22,894, and 22,812
Special Formation: The Nifty 50 formed a bullish candle with minor upper and lower shadows on the daily charts, following a strong long green candle in the previous session. This indicated a continuation of the bullish trend despite some volatility. The index sustained its position above the 10-day and 20-day exponential moving averages (EMAs) for another session, with both averages continuing to slope upwards.
Meanwhile, the medium-term 50-day moving average appeared to have almost flattened out. Among momentum indicators, the Relative Strength Index (RSI) rose to 53.5 and continued to hold above its signal line, while the Stochastic RSI maintained its bullish crossover for the third consecutive session. The MACD also remained above the reference line and gradually moved closer to the zero line, while the green bar on the MACD histogram expanded for another session.
Overall, the positive price action, upward-sloping short-term moving averages and improving momentum indicators point to a continuation of the bullish bias in the near term. 2) Key Levels For The Bank Nifty (54,687) Resistance based on pivot points: 54,965, 55,080, and 55,266 Support based on pivot points: 54,592, 54,477, and 54,291 Resistance based on Fibonacci retracement: 55,128, 55,538 Support based on Fibonacci retracement: 54,035, 52,784
Special Formation: The Bank Nifty witnessed profit booking and declined 0.4 percent after rallying over the previous couple of sessions. Despite this correction, the index continued to trade below all its key moving averages and faced resistance at the 20-day exponential moving average (EMA) for another session. Further, the index failed to sustain above the 50 percent Fibonacci retracement level of the decline from 56,065 to 53,626.
Among momentum indicators, the RSI stood at 44.97, indicating a consolidative trend, while the Stochastic RSI maintained its upward bias with a bullish crossover for another session. Meanwhile, the MACD registered a fresh positive crossover after four sessions of weakness, with the histogram turning green. Overall, the technical indicators present a mixed picture, with the broader trend remaining weak, although improving momentum signals suggest the possibility of a recovery in the near term.
3) Nifty Call Options Data According to the weekly options data, the 23,500 strike holds the maximum Call open interest (with 1.28 crore contracts). This level can act as a key resistance level for the Nifty in the short term. It was followed by the 23,400 strike (94.27 lakh contracts) and 23,200 strike (75.07 lakh contracts). Maximum Call writing was observed at the 23,100 strike, which saw an addition of 24.15 lakh contracts, followed by the 23,550 and 23,200 strikes, which added 19.08 lakh and 16.49 lakh contracts, respectively.
The maximum Call unwinding was seen at the 22,800 strike, which shed 14.36 lakh contracts, followed by the 22,900 and 22,950 strikes, which shed 10.7 lakh and 9.32 lakh contracts, respectively. 4) Nifty Put Options Data On the Put side, the maximum Put open interest was seen at the 22,700 strike (with 1.05 crore contracts), which can act as a key support level for the Nifty in the short term. It was followed by the 22,800 strike (1.046 crore contracts) and the 23,000 strike (91.17 lakh contracts).
The maximum Put writing was placed at the 23,000 strike, which saw an addition of 44.34 lakh contracts, followed by the 22,900 and 23,050 strikes, which added 38.11 lakh and 36.76 lakh contracts, respectively. There was hardly any Put unwinding seen in the 22,600-23,550 strike band. 5) Bank Nifty Call Options Data According to the monthly options data, the 55,000 strike holds the maximum Call open interest, with 11.36 lakh contracts.
This can act as a key resistance level for the index in the short term. It was followed by the 56,000 strike (10.6 lakh contracts) and the 55,500 strike (6.62 lakh contracts). Maximum Call writing was observed at the 55,000 strike (with the addition of 91,170 contracts), followed by the 54,800 strike (54,960 contracts) and 54,700 strike (39,540 contracts). The maximum Call unwinding was seen at the 54,500 strike, which shed 43,560 contracts, followed by the 56,000 and 54,000 strikes, which shed 26,520 and 22,950 contracts, respectively.
6) Bank Nifty Put Options Data On the Put side, the maximum Put open interest was seen at the 55,000 strike (with 11.2 lakh contracts), which can act as a key level for the index in the short term. This was followed by the 54,000 strike (7.91 lakh contracts) and the 56,000 strike (5.31 lakh contracts). The maximum Put writing was placed at the 54,000 strike (which added 78,540 contracts), followed by the 55,500 strike (58,500 contracts) and 55,000 strike (45,360 contracts).
The maximum Put unwinding was seen at the 56,000 strike, which shed 1.07 lakh contracts, followed by the 54,500 and 54,200 strikes, which shed 48,930 and 21,150 contracts, respectively. 7) Funds Flow (Rs crore) The Nifty Put-Call ratio (PCR), which indicates the mood of the market, rose to 1.42 on October 30 - the highest level since July, compared to 1.31 in previous session. The increasing PCR, or being higher than 0.7 or surpassing 1, means traders are selling more Put options than Call options, which generally indicates the firming up of a bullish sentiment in the market.
If the ratio falls below 0.7 or moves towards 0.5, then it indicates selling in Calls is higher than selling in Puts, reflecting a bearish mood in the market. The India VIX, also known as the fear gauge, rose 1.22 percent to 15.30 after declining for three consecutive sessions, although it remained below its October high of 18. The volatility index continues to trade in an elevated zone and remains above all its key moving averages, signalling caution for bulls.
Bulls may not be able to heave a sigh of relief until the VIX falls below the 13 mark. 10) Long Build-up (24 Stocks) A long build-up was seen in 24 stocks. An increase in open interest (OI) and price indicates a build-up of long positions. 11) Long Unwinding (79 Stocks) 79 stocks saw a decline in open interest (OI) along with a fall in price, indicating long unwinding. 12) Short Build-up (86 Stocks)
86 stocks saw an increase in OI along with a fall in price, indicating a build-up of short positions. 13) Short-Covering (34 Stocks) 34 stocks saw short-covering, meaning a decrease in OI, along with a price increase. 14) High Delivery Trades Here are the stocks that saw a high share of delivery trades. A high share of delivery reflects investing (as opposed to trading) interest in a stock. 15) Stocks Under F&O Ban
Securities banned under the F&O segment include companies where derivative contracts cross 95 percent of the market-wide position limit. Stocks added to F&O ban: Nil Stocks retained in F&O ban: Kaynes Technology India, SAIL Stocks removed from F&O ban: Nil
