Trade setup for Thursday: Things to know before opening bell
On November 8, the Nifty50 exhibited a Doji pattern for the second consecutive session, which signifies indecisiveness among market participants regarding the future market trend.
On November 8, the Nifty50 exhibited a Doji pattern for the second consecutive session, which signifies indecisiveness among market participants regarding the future market trend. However, the index continued to form higher highs and higher lows for the fifth consecutive session, raising questions about whether it will reach the levels of 19,550-19,600.
For the Nifty50 to move toward 19,550-19,600, it needs to convincingly breach the critical resistance level of 19,450, which coincides with the 50-day Exponential Moving Average (EMA). Conversely, if it falls below 19,400, a correction might be possible down to the support range of 19,300-19,250.
On November 8, the BSE Sensex closed at 64,976, up by 33 points, while the Nifty50 gained 37 points to reach 19,444. The daily chart displayed a small body candle with minor upper and lower shadows, indicative of a Doji-type candle pattern, suggesting market participants' confusion.
The chart pattern overall remains positive, with expectations of the Nifty advancing towards 19,600 levels in the short term. Dips from the current levels could provide buying opportunities in the 19,300-19,250 range.
Additionally, the Nifty Midcap 100 and Smallcap 100 indices continued to outperform the benchmarks, with a 1 percent and 0.7 percent increase, respectively.
Here are some key data points to consider:
Support and resistance levels for Nifty:
Support: 19,412, 19,398, 19,374
Resistance: 19,460, 19,475, 19,499
The Bank Nifty fell by 79 points to 43,659, forming a bearish candlestick pattern.
Support: 43,573, 43,514, 43,418
Resistance: 43,763, 43,822, 43,918
Call options data:
Maximum Call OI at 19,500 strike, followed by 19,600 strike.
Maximum Call writing at 19,500 strike, followed by 19,600 and 19,700 strikes.
Maximum Call unwinding at 19,300 strike.
Put options data:
Maximum Put OI at 19,300 strike, followed by 19,400 strike.
Meaningful Put writing at 19,400 strike.
Put unwinding at 18,700 strike.
Stocks with high delivery percentage: Mphasis, Marico, Havells India, ITC, and Britannia Industries had the highest delivery percentages among F&O stocks.
Long build-up in 59 stocks and long unwinding in 25 stocks.
Short build-up in 45 stocks and short-covering in 45 stocks, including Alkem Laboratories, MRF, Apollo Tyres, Info Edge India, and Ipca Laboratories.
Please note that this information is for reference and should not be considered as financial advice. It's always recommended to consult with certified financial experts before making any investment decisions.