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Trade Setup For Monday: Top 15 Things To Know Before Opening Bel

It turned out to be a Black Friday for the market as the BSE Sensex witnessed this year’s third biggest single-day fall on 26 November tracking a negative trend in global peers. Fears of a new COVID-19 variant detected in South Africa, increasing COVID cases in Europe and constant FII selling rattled the investors. The selling pressure was visible across most sectors barring Pharma.

On Friday, the BSE Sensex tanked 1,687.94 points or 2.87 percent to close at 57,107.15, while the Nifty50 fell 509.80 points or 2.91 percent to 17,026.50 and formed large bearish candle on the daily charts. The index corrected more than 4 percent for the week, forming bearish candle on the weekly scale.

“A long negative candle was formed on the daily chart with gap down opening. Technically, this action indicates sharp downside breakout in the market after a minor upside bounce. This also reflects a strength of a down trend compared to minor recent upside bounce. This signal chances of more weakness in the coming weeks,” says Nagaraj Shetti, Technical Research Analyst at HDFC Securities.

“The next lower targets to be watched for Nifty around 16,500 levels in the next couple of weeks. Any pullback rally from here could find strong resistance around 17,200 levels,” he adds.

The broader markets also saw kneejerk reaction, with the Nifty Midcap 100 and Smallcap 100 indices falling around 3 percent each, while the Volatility Index spiked by 24.84 percent to 20.80 on Friday.

We have collated 15 data points to help you spot profitable trades:

Note: The open interest (OI) and volume data of stocks given in this story are the aggregates of three-month data and not of the current month only.

Key support and resistance levels on the Nifty

According to pivot charts, the key support levels for the Nifty are placed at 16,889.6, followed by 16,752.8. If the index moves up, the key resistance levels to watch out for are 17,259.3 and 17,492.2.

Nifty Bank

The Nifty Bank plummeted 1,339.30 points or 3.58 percent to close at 36,025.50 on November 26. The important pivot level, which will act as crucial support for the index, is placed at 35,663.44, followed by 35,301.37. On the upside, key resistance levels are placed at 36,628.23 and 37,230.96 levels.

Call option data

Maximum Call open interest of 27.20 lakh contracts was seen at 18000 strike, which will act as a crucial resistance level in the December series.

This is followed by 17500 strike, which holds 18.48 lakh contracts, and 17000 strike, which has accumulated 14.36 lakh contracts.

Call writing was seen at 17200 strike, which added 4.48 lakh contracts, followed by 17300 strike which added 4.28 lakh contracts, and 18000 strike which added 3.94 lakh contracts.

Call unwinding was seen at 17800 strike, which shed 8,650 contracts.

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