Trade Setup for October 28: Top 15 things to know before the opening bell
According to market experts, the 20-day EMA is expected to act as an immediate resistance for Nifty 50, followed by the 23,000–23,200 zone, which remains a critical hurdle. On the downside, immediate support is placed in the 22,500–22,600 range.
The Nifty 50 witnessed consolidation on October 27, the monthly F&O expiry day, before closing marginally lower with a negative bias. The index attempted to extend its recovery and tested the 20-day exponential moving average (EMA) at 22,824 but failed to sustain above this level at the close. According to market experts, the 20-day EMA is expected to act as an immediate resistance, followed by the 23,000–23,200 zone, which remains a critical hurdle.
On the downside, immediate support is placed in the 22,500–22,600 range. Unless the index decisively breaks above 23,200, consolidation and range-bound trading are likely to persist. The broader market structure remains weak, while elevated crude oil prices continue to weigh on sentiment. Here are 15 data points we have collated to help you spot profitable trades: 1) Key Levels For The Nifty 50 (22,750)
Resistance based on pivot points: 22,813, 22,858, and 22,932 Support based on pivot points: 22,665, 22,620, and 22,546 Special Formation: The Nifty 50 formed a small-bodied bullish candle with upper and lower shadows on the daily timeframe, indicating indecision between bulls and bears amid heightened volatility. The index continues to trade below its 20-, 50-, 100- and 200-day EMAs, suggesting that the broader trend remains weak.
The Relative Strength Index (RSI) rose to 46, registering a positive crossover, while the Moving Average Convergence Divergence (MACD) maintained its uptrend and remained above the reference line. However, the MACD histogram’s green bar contracted for the fifth consecutive session, indicating a slowdown in bullish momentum. Overall, the technical indicators suggest a tentative recovery in momentum, but the broader trend remains weak, with the possibility of continued consolidation until the index decisively moves above key resistance levels.
2) Key Levels For The Bank Nifty (53,975) Resistance based on pivot points: 54,462, 54,628, and 54,896 Support based on pivot points: 53,925, 53,759, and 53,490 Resistance based on Fibonacci retracement: 54,937, 55,657 Support based on Fibonacci retracement: 52,784, 51,895 Special Formation: The Bank Nifty fell 0.72 percent and formed a long bearish candle with a small upper shadow, following a hammer-like candlestick pattern in the previous session.
The price action indicates renewed weakness, accompanied by above-average trading volumes. The index continues to trade below all key moving averages, which are sloping downward, signalling a sustained bearish trend. The RSI stands at 35.66 and maintains a bearish crossover, while the MACD sustains a negative crossover, with the red histogram bar widening. Overall, the technical indicators point to persistent bearish momentum, suggesting the possibility of further downside pressure in the near term.
3) Nifty Call Options Data According to the weekly options data, the maximum Call open interest was seen at the 23,000 strike (with 55.11 lakh contracts). This level can act as a key resistance level for the Nifty in the short term. It was followed by the 22,800 strike (46.44 lakh contracts) and 23,200 strike (35.96 lakh contracts). Maximum Call writing was observed at the 22,800 strike, which saw an addition of 26.84 lakh contracts, followed by the 23,000 and 22,700 strikes, which added 22.17 lakh and 20.79 lakh contracts, respectively.
There was hardly any Call unwinding seen in the 22,300-23,250 strike band. 4) Nifty Put Options Data On the Put side, the 22,700 strike holds the maximum Put open interest (with 34.33 lakh contracts), which can act as a key support level for the Nifty in the short term. It was followed by the 22,300 strike (32.32 lakh contracts) and the 22,800 strike (32.14 lakh contracts). The maximum Put writing was placed at the 22,700 strike, which saw an addition of 19.79 lakh contracts, followed by the 22,800 and 22,300 strikes, which added 15.44 lakh and 14.71 lakh contracts, respectively.
There was hardly any Put unwinding seen in the 22,300-23,250 strike band. 5) Bank Nifty Call Options Data According to the monthly options data, the maximum Call open interest was seen at the 55,000 strike, with 10.56 lakh contracts. This can act as a key resistance level for the index in the short term. It was followed by the 55,500 strike (5.87 lakh contracts) and the 54,500 strike (5.08 lakh contracts).
Maximum Call writing was observed at the 55,000 strike (with the addition of 3.46 lakh contracts), followed by the 54,500 strike (3.03 lakh contracts) and 55,500 strike (2.62 lakh contracts). The maximum Call unwinding was seen at the 53,100 strike, which shed 330 contracts, followed by the 53,200 and 53,300 strikes, which shed 270 and 240 contracts, respectively. 6) Bank Nifty Put Options Data On the Put side, the 55,000 strike holds the maximum Put open interest (with 9.87 lakh contracts), which can act as a key level for the index in the short term.
This was followed by the 54,500 strike (4.48 lakh contracts) and the 54,000 strike (4.3 lakh contracts). The maximum Put writing was placed at the 55,000 strike (which added 2.61 lakh contracts), followed by the 54,500 strike (2.16 lakh contracts) and 55,500 strike (2.14 lakh contracts). The maximum Put unwinding was seen at the 55,300 strike, which shed 4,290 contracts, followed by the 55,200 and 55,100 strikes, which shed 2,760 and 870 contracts, respectively.
7) Funds Flow (Rs crore) The Nifty Put-Call ratio (PCR), which indicates the mood of the market, fell to 1.06 on October 27, compared to 1.11 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, a gauge of market volatility and investor fear, cooled off after a five-session uptrend, falling 4.41 percent to 16.4. However, it remained in an elevated zone, indicating continued uncertainty and posing a risk to bullish sentiment. A decisive decline below the 13 mark would be necessary to bring bulls into a comfort zone. 10) Long Build-up (4 Stocks) A long build-up was seen in 4 stocks.
An increase in open interest (OI) and price indicates a build-up of long positions. 11) Long Unwinding (76 Stocks) 76 stocks saw a decline in open interest (OI) along with a fall in price, indicating long unwinding. 12) Short Build-up (2 Stocks) 2 stocks saw an increase in OI along with a fall in price, indicating a build-up of short positions. 13) Short-Covering (134 Stocks) 134 stocks saw short-covering, meaning a decrease in OI, along with a price increase.
14) High Delivery Trades, and High Rollovers 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. Here are the stocks which saw the highest rollovers on expiry day. 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: SAIL Stocks removed from F&O ban: Nil
