Top 15 Things to Know Before the Opening Bell Today
Top 15 Things to Know :The Nifty 50 surged to a six-week high last week, recording a remarkable rally. It closed 0.7% higher on March 21 and gained 4.26% for the week—the biggest weekly gain since February 2021. The India VIX, which measures market volatility, also dropped to a 24-week low, signaling stability.
As we head into a new trading day, experts believe that the 23,400-23,500 range is a key resistance zone, while support lies between 23,100-23,000. If the Nifty breaks above 23,500, it could aim for 23,800, whereas a dip below 23,000 might invite selling pressure.
To help you stay ahead, here are 15 crucial market insights before the bell rings:
1. Key Levels for Nifty 50
- Current Level: 23,350
- Resistance Levels: 23,398 | 23,462 | 23,565
- Support Levels: 23,192 | 23,128 | 23,025
Nifty formed a long bullish candle on the daily charts, continuing its higher highs-higher lows trend. It is trading above the Bollinger Bands’ upper limit and the 50-day EMA (Exponential Moving Average), reinforcing the bullish sentiment.
2. Key Levels for Bank Nifty
- Current Level: 50,594
- Resistance Levels: 50,684 | 50,868 | 51,166
- Support Levels: 50,088 | 49,904 | 49,606
Bank Nifty maintained its upward momentum for the seventh consecutive session, with above-average volumes and a strong RSI (Relative Strength Index) at 68.39.
3. Nifty Call Options Data
- 24,000 strike: Highest open interest (1.17 crore contracts) – likely resistance.
- Maximum Call writing: 24,100 strike (54.17 lakh contracts).
4. Nifty Put Options Data
- 23,000 strike: Highest open interest (1.29 crore contracts) – strong support.
- Maximum Put writing: 23,000 strike (36.49 lakh contracts).
5. Bank Nifty Call Options Data
- 52,000 strike: Highest open interest (17.75 lakh contracts).
- Maximum Call writing: 50,600 strike (1.93 lakh contracts).
6. Bank Nifty Put Options Data
- 49,000 strike: Highest open interest (25.42 lakh contracts).
- Maximum Put writing: 50,500 strike (6.08 lakh contracts).
7. Institutional Funds Flow (Rs Crore)
| Category | Buy Value | Sell Value | Net Flow |
|---|---|---|---|
| FIIs (Foreign Investors) | 12,542 | 11,950 | +592 |
| DIIs (Domestic Investors) | 8,473 | 7,999 | +474 |
Both FIIs and DIIs remained net buyers, adding strength to the market.
8. Put-Call Ratio (PCR)
- Nifty PCR: 1.15 (bullish sentiment).
- PCR above 1 indicates strong Put writing, meaning traders expect higher prices.
9. India VIX (Volatility Index)
- Current Level: 12.58 (24-week low).
- Market stability: A falling VIX suggests lower fear and higher investor confidence.
10. Long Build-up (97 Stocks)
An increase in both open interest and stock price signals long build-up, indicating traders are taking bullish positions in these stocks.
11. Long Unwinding (11 Stocks)
These stocks saw a decline in both price and open interest, indicating profit-booking by traders.
12. Short Build-up (32 Stocks)
An increase in open interest with a decline in price suggests that traders are betting on further downside in these stocks.
13. Short Covering (78 Stocks)
A fall in open interest with a rise in price indicates that traders are closing their bearish positions, which is a positive signal.
14. High Delivery-Based Stocks
Stocks with high delivery volume indicate strong investor interest rather than short-term trading activity.
15. Stocks Under F&O Ban
Currently banned in the F&O segment:
- Hindustan Copper
- IndusInd Bank
- Polycab India
Removed from ban:
- Manappuram Finance
- SAIL
Frequently Asked Questions (FAQs)
1. What is the key resistance level for Nifty 50 today?
The 23,400-23,500 range is a major resistance zone. If Nifty crosses 23,500, it could move towards 23,800.
2. What is the support level for Nifty 50?
The 23,100-23,000 range is the support level. A breakdown below 23,000 could lead to further downside.
3. What does a high Put-Call Ratio (PCR) indicate?
A PCR above 1 means more Put writing than Call writing, suggesting bullish sentiment.
4. Why is India VIX important?
India VIX measures market volatility. A lower VIX (12.58) means lower fear, signaling market stability.
5. What is short covering, and why is it important?
Short covering happens when traders close their bearish positions, leading to a price rise. This is a bullish signal.
6. Which stocks are under the F&O ban today?
- Hindustan Copper
- IndusInd Bank
- Polycab India
7. What is the Bank Nifty resistance level?
Bank Nifty faces resistance at 50,684, 50,868, and 51,166.
8. What does a long build-up mean?
A long build-up happens when both the open interest and price increase, indicating a strong bullish trend.
Conclusion
With Nifty 50 at a six-week high and India VIX at a multi-month low, the market shows strong bullish momentum. However, traders must keep an eye on the 23,400-23,500 resistance and 23,100-23,000 support zones. Monitoring PCR, FIIs’ inflows, and key options data will help in making informed decisions.
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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.