Top 15 Things to Know Before the Opening Bell: Market Insights for Profitable Trades
Market Insights for Profitable Trades : The Indian stock market continued its positive momentum, with the Nifty 50 closing flat but maintaining an uptrend for the third straight session on March 7. The index sustained above the bearish gap of February 28, with above-average trading volumes, indicating market positivity.
Experts suggest that as long as Nifty 50 holds 22,500, the market may see an upward move toward 22,750-22,800 levels. However, a fall below 22,500 could push the index down to 22,300.
To help traders and investors make informed decisions, here are 15 key market insights before the market opens:
1. Key Levels for Nifty 50 (22,553)
| Resistance (Pivot Points) | Support (Pivot Points) |
|---|---|
| 22,615 | 22,486 |
| 22,655 | 22,446 |
| 22,719 | 22,381 |
📌 Special Formation: The Nifty 50 formed a small bullish candle, indicating consolidation while staying above the 5 and 10-day EMAs. The Relative Strength Index (RSI) is at 41.7, maintaining a positive crossover.
2. Key Levels for Bank Nifty (48,498)
| Resistance | Support |
|---|---|
| 48,656 | 48,388 |
| 48,738 | 48,306 |
| 48,872 | 48,172 |
📌 Special Formation: The Bank Nifty formed a Doji-like candlestick pattern, signaling market indecision. The index closed below the 5-day EMA after losing 130 points on Friday.
3. Nifty Call Options Data
- Maximum Call Open Interest (OI): 23,100 strike (84.92 lakh contracts) – acts as key resistance.
- Other High OI Strikes: 22,800 (83.85 lakh) and 23,000 (82.67 lakh).
- Maximum Call Writing: 23,600 strike (54.29 lakh contracts added).
- Call Unwinding: Seen at 22,400 strike (shed 2.85 lakh contracts).
4. Nifty Put Options Data
- Maximum Put OI: 22,300 strike (83.65 lakh contracts) – acts as key support.
- Other High OI Strikes: 22,000 (69.27 lakh) and 22,500 (66.71 lakh).
- Maximum Put Writing: 22,300 strike (48.06 lakh contracts added).
5. Bank Nifty Call Options Data
- Maximum Call OI: 49,000 strike (15.47 lakh contracts) – key resistance.
- Other High OI Strikes: 50,000 (14.75 lakh) and 48,500 (9.4 lakh).
- Maximum Call Writing: 49,000 strike (2.25 lakh contracts added).
6. Bank Nifty Put Options Data
- Maximum Put OI: 48,000 strike (13.05 lakh contracts) – key support.
- Other High OI Strikes: 47,000 (10.56 lakh) and 49,000 (8.38 lakh).
- Maximum Put Writing: 48,000 strike (73,170 contracts added).
7. Funds Flow (Rs Crore)
- Foreign Institutional Investors (FIIs): Net buyers
- Domestic Institutional Investors (DIIs): Net sellers
(Exact numbers will be updated in live reports.)
8. Put-Call Ratio (PCR)
- Nifty PCR: 1.08 (dropped from 1.14).
- A higher PCR (>1) indicates bullish sentiment, while a lower PCR (<0.7) signals bearishness.
9. India VIX (Volatility Index)
- India VIX dropped 1.86% to 13.47, remaining below all major moving averages.
- A lower VIX signals reduced market fear, favoring bulls.
10. Stocks with Long Build-up (41 Stocks)
- Indicates strength in these stocks as both price and open interest increased.
(Stock names will be updated in live reports.)
11. Stocks with Long Unwinding (52 Stocks)
- Indicates profit-booking as price and open interest declined.
12. Stocks with Short Build-up (79 Stocks)
- Indicates bearish sentiment as price decreased while open interest increased.
13. Stocks with Short Covering (48 Stocks)
- Indicates bullish reversal as price increased while open interest declined.
14. High Delivery Stocks (Indicating Strong Investor Interest)
- Stocks with high delivery volume indicate long-term buying interest rather than short-term trading.
(Stock names will be updated in live reports.)
15. Stocks Under F&O Ban
- New Addition: Hindustan Copper
- Retained: Manappuram Finance
- Removed: None
Frequently Asked Questions (FAQs)
1. What is the key resistance level for Nifty 50?
- The major resistance levels for Nifty 50 are 22,615, 22,655, and 22,719.
2. What happens if Nifty falls below 22,500?
- If Nifty drops below 22,500, it may find support at 22,300.
3. What is the current market sentiment based on Put-Call Ratio?
- The Nifty PCR is 1.08, indicating bullish market sentiment.
4. What does a drop in India VIX mean?
- A lower India VIX (13.47) signals reduced market fear, favoring bulls.
5. Which stocks are showing a strong bullish trend?
- Stocks with long build-up (41 stocks) indicate strong bullish momentum.
6. What is the impact of high delivery stocks?
- High delivery percentage stocks indicate long-term investor interest rather than short-term trades.
Final Thoughts
The market is currently in a bullish phase, with Nifty 50 maintaining its uptrend and Bank Nifty showing indecisiveness. The Put-Call Ratio, India VIX, and options data suggest that traders should watch key levels carefully.
For those looking to trade, focusing on support and resistance levels, delivery volumes, and derivatives data will be critical in identifying profitable opportunities.
💡 Stay tuned for live updates before the opening bell!
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.