Market Trade Setup: The bullish trend in the stock market has strengthened after the mandate in favor of NDA in Bihar elections. Recovering from heavy selling in the previous session, Nifty 50 gave a two-week high closing of 25,910 levels. According to technical experts, momentum indicators and technical charts are showing tremendous strength, which is a clear indication of further bullishness in the market. Nifty 50 has formed a long bullish candle on the daily chart, which shows strong buying. However, the level of 26,000 still remains the biggest resistance.
Here we are giving you some such figures on the basis of which it will be easy for you to catch profitable deals.
Where is the strength in Nifty and Bank Nifty, where is the hindrance?
Market experts say that the rise in indices is now ready to break the barriers, but it is important to keep an eye on important support levels.
26,000 challenge for Nifty 50
Nifty 50 has formed a long bullish candle on the daily chart, which shows strong buying. RSI is above 60 (62.24) and MACD is trending towards the line, all these factors are bullish. However, the 26,000 level still remains the biggest hurdle as this strike has the highest call open interest (OI) with 1.36 crore contracts. After this there is a big hurdle at 26,500 also. The biggest support for Nifty is at 25,500, where 87.49 lakh Put OI is present. As long as the index remains above 25,700, the uptrend is likely to continue.
Bank Nifty can lead the rise
On the last day of last week, Bank Nifty remained above the down trendline for the third consecutive time, which has now become a support. On Friday, Bank Nifty closed at a new closing high at 58,518. The RSI is near 70 (67.08), indicating strong buying sentiment. The immediate resistance of Bank Nifty is in the zone of 58,735 and then 59,000–60,000. The biggest support for it is at 58,180. According to Options data, both Call and Put OI are the highest at 58,500, which means this level will act as a pivot point.
nifty call option data
According to weekly options data, maximum call open interest was seen at 26,000 strike with 1.36 crore contracts. This level can act as a resistance for Nifty in the short term. After this, the maximum open interest is at 26,500 strike (1.03 crore contracts) and 26,200 strike (91.6 lakh contracts).
nifty put option data
On the put side, maximum put open interest is at 25,500 strike with 87.49 lakh contracts, which may act as a key support level for Nifty. After this, open interest remains at 25,800 strike (83.6 lakh contracts) and 25,700 strike (79.56 lakh contracts).
bank nifty call option data
According to monthly options data, maximum call open interest is at 58,500 strike with 19.33 lakh contracts. This level may act as a key resistance level for the index in the short term. After this, open interest remains at 60,000 strike (12.32 lakh contracts) and 59,000 strike (11.64 lakh contracts).
bank nifty put option data
On the put side, maximum put open interest was seen at 58,500 strike with 17.3 lakh contracts, which could act as a key support level for the index. After this, open interest remains at 58,000 strike (14.55 lakh contracts) and 57,000 strike (11.77 lakh contracts).
The India VIX index, which measures potential volatility, has fallen to 11.94, which is a big relief for bullish investors. VIX staying below the 10 and 100-day EMAs creates a good situation for the market to rise.
put call ratio
The Nifty Put-Call Ratio (PCR), which reflects market mood, fell to 0.92 on November 14 compared to 1.1 in the previous session. Here let us tell you that PCR above 0.7 or beyond 1 is generally considered a bullish sign. Whereas a ratio falling below 0.7 or towards 0.5 indicates recession.
FII-DII action
Currently, foreign institutional investors (FIIs) remain sellers in the market, while domestic institutional investors (DIIs) have continued buying on a large scale, which has provided strong support to the market, preventing it from falling further.
Stocks covered under F&O ban
Newly included stocks in F&O ban: None
Stocks already included in F&O ban: SAIL
Stocks removed from F&O ban: None
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