Monday's trade setup: 15 things to know before the opening bell

 Monday's trade setup: 15 things to know before the opening bell

73 equities were on the short-covering list based on the OI %. These consist of Gujarat Gas, Hero MotoCorp, Infosys, LIC Housing Finance, as well as Zydus Lifesciences.

19,300 will be significant for a higher Nifty

On November 3, the market continued its upward trend for the second straight session. However, given that it is currently at a critical juncture in the 19,200–19,300 range, which served as a solid support level in August before a strong rally in September, and because bulls and bears are still fighting for a clear direction, it is unclear if the market will be able to continue its upward trend from this point on.

Indeed, it is feasible only if the index rises above and stays above the 19,300 mark. If this happens, the index may encounter resistance again in the range of 19,500 to 19,600. Conversely, analysts believe that the important support range on the downside is between 19,000 and 18,900.

On November 3, the Nifty50 was up 97 points at 19,231 and produced a Spinning Top-like candlestick formation on the daily charts, showing uncertainty among buyers and sellers about future developments. The BSE Sensex had soared 283 points to 64,364.

"Nifty is probably going to trade with a sideways to positive tilt, between 19,000 and 19,300. According to Master Capital Services Senior Vice President Arvinder Singh Nanda, "On the downside, a sustained fall below the psychological mark 19,000 will bring about more selling for 18,800–18,700. A conclusive breakthrough of the upper range value would necessitate such an advance for 19,500."

The index is now getting closer to the 20-, 100-, and 50-day EMA resistance zones. "To counter the negative tone and go closer to 19,850 levels, we want a clear closing above 19,500. In the event that the slide restarts, the 18,800–19,000 range would provide support on the downside, according to Religare Broking's SVP of Technical Research Ajit Mishra.

The Nifty Midcap 100 and Smallcap 100 indexes increased by 0.7 percent and 1.2 percent, respectively, on positive breadth, while the wider markets also maintained their upward trajectory. For every share that fell on the NSE, almost two shares climbed.

We've gathered 15 data points to assist you in identifying lucrative trades:

Note: The statistics on stocks' open interest (OI) and volume are the sums of three months' worth of data, not just the current month.

Important Nifty support and resistance levels

According to the pivot point calculator, the Nifty may find support around 19,214, then 19,199, and 19,174. Higher up, 19,264 may be the first point of difficulty, then 19,280 and 19,305.

Bank Nifty

On November 3, despite higher high, higher low formation for yet another day, the Bank Nifty maintained the formation of the Doji candlestick pattern on the hourly graphs for the third session in a row, signaling the struggle between bulls and bears for strong direction. At43,318, the index increased by 301 points.

Experts indicated that after the index broke beyond the 200-day EMA (exponential moving average, 43,236), the next test on the upward side seems to be 42,500 (20-day EMA).

"A considerable amount of call writing was noticed near the 43,500 immediate resistance level, which the Bank Nifty struggled to overcome. A fall below the index's lower-end support level of 42,800 might exacerbate selling pressure, according to Kunal Shah, senior technical and derivative analyst at LKP Securities.

The pivot point calculator predicts that the index will find support at 43,244 and go on to 43,198 and 43,123. The first resistance on the upside is located at 43,393, followed by 43,439 and 43,514.

Data on call options

According to weekly options data, the Nifty may encounter significant resistance near the 19,300 strike, which has the highest Call open interest (OI) at 67.33 lakh contracts. With 58.61 lakh contracts, the 19,500 strike came next, while with 54.45 lakh contracts, the 19,400 strike came before it.

The strike that saw the most Call writing was 19,300, adding 33.01 lakh contracts. This was followed by 19,400 and 19,500 strikes, adding 21.94 lakh and 19.63 lakh contracts, respectively.

Maximum Call unwinding occurred at strike 19,100, which resulted in the loss of 19.37 lakh contracts. Strikes 19,000 and 18,900 resulted in the loss of 5.09 lakh and 2.74 lakh contracts, respectively.

Insert option data.

The Nifty may find significant support from the put side, as the largest open interest was seen at 19,200 strike with 52.32 lakh contracts. 19,000 strikes totaling 44.61 lakh contracts and 18,500 strikes totaling 37.59 lakh contracts came after it.

Significant Put writing occurred at strike 19,200, adding 35.32 lakh contracts; this was followed by strike 19,300 and strike 18,700, adding 18.54 lakh and 9.37 lakh contracts, respectively.

The put unwinding at 18,300 strike resulted in the loss of 2.03 lakh contracts, while the losses at 18,400 and 19,100 strikes were 1.49 lakh and 1.29 lakh contracts, respectively.