Trade Setup for Muhurat Trading: Top 15 things to know before the opening bell

The market is expected to maintain its positive bias during the Muhurat trading session, with the index likely to attempt a move towards the 25,100–25,200 hurdle zone, followed by 25,500 as a crucial resistance level.

Market expected to maintain its positive bias during Muhurat trading session

Index may attempt a move towards 25,100–25,200 hurdle, followed by 25,500

On downside, support shifted higher to 24,800, followed by 24,600–24,400 zone

The Nifty 50 staged a sharp recovery after a weak opening on November 6, gaining momentum as the session progressed to end 2 percent higher. The index has now risen more than 10 percent over the past seven consecutive sessions.

Momentum remains robust, with the index surpassing its August high in a relatively short span and sustaining well above key moving averages.

Against this backdrop, the market is expected to maintain its positive bias during the Muhurat trading session, with the index likely to attempt a move towards the 25,100–25,200 hurdle zone, followed by 25,500 as a crucial resistance level.

On the downside, support has shifted higher to 24,800, followed by the 24,600–24,400 zone, which is expected to act as a crucial support area, according to market experts.

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

1) Key Levels For The Nifty 50 (25,030)

Resistance based on pivot points: 25,062, 25,213, and 25,458

Support based on pivot points: 24,571, 24,419, and 24,174

Special Formation: The Nifty 50 formed a long bullish candle with a minor lower wick on the daily charts and continued to close above the previous day’s high for the seventh consecutive session, indicating sustained buying interest. The index remained above its 200-day EMA for the third consecutive session, while its short- and medium-term moving averages continued to trend sharply higher. Further, it closed comfortably above the 61.8 percent Fibonacci retracement level of the correction from 26,373 to 22,180. The RSI climbed closer to the 80 mark, ending at 78.55, while the MACD maintained its bullish crossover and continued to move sharply higher. The MACD histogram’s green bar expanded for the seventh consecutive session. All these technical indicators point to strong bullish momentum and suggest the possibility of further upside, although the RSI approaching the overbought zone warrants some caution in the near term.

2) Key Levels For The Bank Nifty (59,086)

Resistance based on pivot points: 59,172, 59,588, and 60,263

Support based on pivot points: 57,823, 57,407, and 56,732

Resistance based on Fibonacci retracement: 59,250, 61,765

Support based on Fibonacci retracement: 56,928, 55,600

Special Formation: The Bank Nifty also formed a candlestick pattern similar to that of the Nifty 50, accompanied by higher trading volumes. It surged 2.27 percent and continued to close above the previous day’s high for the fourth consecutive session, signalling sustained bullish momentum. The banking index decisively surpassed its June swing high on Friday and moved closer to the 78.6 percent Fibonacci retracement level of the correction from its record high of 61,765 to 49,955. The RSI jumped closer to the 75 mark, ending at 74.57, while the MACD sustained its upward trajectory above the zero line, with the histogram’s green bar expanding for the sixth consecutive session. The Bank Nifty also remained comfortably above its 200-day EMA, while its short- and medium-term moving averages continued to slope upwards. Overall, the technical indicators point to strong bullish momentum and suggest the possibility of further upside, although the RSI entering the overbought territory warrants some caution in the near term.

3) Nifty Call Options Data

According to the weekly options data, the maximum Call open interest was seen at the 25,000 strike (with 1.1 crore contracts). This level can act as a key resistance level for the Nifty in the short term. It was followed by the 25,500 strike (96.26 lakh contracts) and 25,200 strike (58.27 lakh contracts).

Maximum Call writing was observed at the 25,400 strike, which saw an addition of 24.39 lakh contracts, followed by the 25,500 and 25,300 strikes, which added 22.04 lakh and 11.25 lakh contracts, respectively. The maximum Call unwinding was seen at the 24,800 strike, which shed 40.04 lakh contracts, followed by the 24,600 and 24,550 strikes, which shed 36.45 lakh and 34.75 lakh contracts, respectively.

4) Nifty Put Options Data

On the Put side, the 24,600 strike holds the maximum Put open interest (with 64.46 lakh contracts), which can act as a key support level for the Nifty in the short term. It was followed by the 24,700 strike (61.63 lakh contracts) and the 24,800 strike (50.79 lakh contracts).

The maximum Put writing was placed at the 24,700 strike, which saw an addition of 55.38 lakh contracts, followed by the 24,800 and 24,600 strikes, which added 47.71 lakh and 44.73 lakh contracts, respectively. There was hardly any Put unwinding seen in the 24,550-25,500 strike band.

5) Bank Nifty Call Options Data

According to the monthly options data, the maximum Call open interest was seen at the 58,000 strike, with 20.65 lakh contracts. This can act as a key level for the index in the short term. It was followed by the 60,000 strike (7.27 lakh contracts) and the 59,000 strike (6.51 lakh contracts).

Maximum Call writing was observed at the 58,700 strike (with the addition of 1.62 lakh contracts), followed by the 60,000 strike (89,160 contracts) and 60,100 strike (56,220 contracts). The maximum Call unwinding was seen at the 58,000 strike, which shed 1.83 lakh contracts, followed by the 57,800 and 59,000 strikes, which shed 75,810 and 59,670 contracts, respectively.

6) Bank Nifty Put Options Data

On the Put side, the 58,000 strike holds the maximum Put open interest (with 18.58 lakh contracts), which can act as a key level for the index in the short term. This was followed by the 57,500 strike (5.2 lakh contracts) and the 59,000 strike (3.99 lakh contracts).

The maximum Put writing was placed at the 58,000 strike (which added 3.82 lakh contracts), followed by the 58,500 strike (2.31 lakh contracts) and 59,000 strike (2.17 lakh contracts). There was hardly any Put unwinding seen in the 57,500-60,250 strike band.

7) Funds Flow (Rs crore)

8) Put-Call Ratio

The Nifty Put-Call ratio (PCR), which indicates the mood of the market, rose to 1.47 on November 6, compared to 1.29 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.

9) India VIX

The fear gauge, India VIX, jumped 12.1 percent to 17.46, extending its upward trend for another consecutive session and sustaining well above all key moving averages. The sharp rise in volatility signals heightened market uncertainty and suggests that traders should remain cautious despite the strong bullish momentum in the benchmark indices

10) Long Build-up (62 Stocks)

A long build-up was seen in 62 stocks. An increase in open interest (OI) and price indicates a build-up of long positions.

11) Long Unwinding (35 Stocks)

35 stocks saw a decline in open interest (OI) along with a fall in price, indicating long unwinding

12) Short Build-up (57 Stocks)

57 stocks saw an increase in OI along with a fall in price, indicating a build-up of short positions.

13) Short-Covering (69 Stocks)

69 stocks saw short-covering, meaning a decrease in OI, along with a price increase.

14) High Delivery Trades

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.

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: Kaynes Technology India

Stocks removed from F&O ban: Nil

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