Trade Setup for Today: 15 things to know before the opening bell

On the Put side, the maximum open interest was at the 23,000 strike (with 72 lakh combined OI)

Domestic benchmark indices, Sensex and Nifty50, began trading at all-time highs on Thursday, following strong performance in global markets, boosted by a favorable U.S. inflation report that raised expectations of a potential interest rate cut by the US Federal Reserve. Technically, the Nifty index on a daily scale has formed a bearish belt hold pattern. Experts suggest that if the index sustains below 23,350, profit booking can be expected. On the downside, immediate support for Nifty is placed near 23,000, followed by 22,720, where the 34-Day Exponential Moving Average (DEMA) support is located.

Here are 15 data points to help you spot profitable trades:

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Key Levels for the Nifty 50:

Supports based on pivot points: 23,265.28, 23,207.62, and 23,061.62

Resistance based on pivot points: 23,411.28, 23,499.62, and 23,645.62

Special Formation: A small negative candle was formed on the daily chart at the highs with a minor lower shadow. This market action indicates typical sideways range movement in the last four sessions. The larger degree positive pattern of higher tops and bottoms is intact on the daily chart, and the market is currently poised to form a new higher top in the near term.

Key Levels for the Bank Nifty:

Resistance based on pivot points: 50,186.55, 50,478, and 51,014.05

Support based on pivot points: 49,650.5, 49,405.9, and 48,869.85Special Formation: The Bank Nifty index opened with a gap up but subsequently lost momentum and closed the day on a negative note at 49,847. Technically, the Bank Nifty on a daily scale has formed a bearish Marubozu candlestick pattern following the formation of a tri-star doji, indicating weakness.

Nifty Call Options Data: According to weekly options data, the 23,500 strike (with 2.10 crore combined OI) had the maximum Call open interest, acting as a key resistance level for Nifty in the short term. This was followed by the 23,800 strike (1.21 crore combined OI). Significant call writing was also observed at the 23,500 Strike for the second consecutive day. The option activity at the 23,500 Strike will provide cues about Nifty’s direction in the coming days.

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Nifty Put Options Data: On the Put side, the maximum open interest was at the 23,000 strike (with 72 lakh combined OI), acting as a key support level for Nifty. This was followed by the 23,300 strike with 49 lakh combined OI.

FII Funds Flow (Rs crore):

Put-Call Ratio: The Nifty Put-Call ratio (PCR), indicating market sentiment, remains at 1.01. An increasing PCR above 0.7 or surpassing 1 generally indicates bullish sentiment, while a ratio below 0.7 or moving towards 0.5 indicates a bearish mood.

Nifty Max Pain Point: The Nifty max pain point has moved to 23,350 from the 23,200 strike price. The max pain theory shows the level at which option sellers are likely to have the least loss on expiry.

India VIX: Volatility remains in the 12-14 range. Compared to the previous session, India VIX, the fear index, closed at 13.49 percent, down 6 percent.

Long Build-up (60 Stocks): A long build-up was seen in 60 stocks, indicated by an increase in open interest (OI) and price.

Long Unwinding (21 Stocks): 21 stocks saw a decline in open interest (OI) along with a fall in price, indicating long unwinding.

Short Build-up (39 Stocks): 39 stocks saw an increase in OI along with a fall in price, indicating a build-up of short positions.

Short-Covering (65 Stocks): 65 stocks saw short-covering, indicated by a decrease in OI along with a price increase.

F&O Ban: Securities banned under the F&O segment include companies where derivative contracts cross 95 percent of the market-wide position limit. Currently, these include Sun TV, Hindustan Copper, India Cement, GMR Infra, and SAIL.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before making any investment decisions.