Top 15 Things to Know Before the Stock Market Opens Today
15 Things to Know : The Indian stock market witnessed a day of choppy trading as Nifty 50 erased all its opening gains and ended flat with a slight negative bias. The index hit a fresh 9-month low, trading near the lower end of the Bollinger bands, which signals underlying weakness. Market experts suggest sticking to a “sell on rally” approach while keeping an eye on the RSI (Relative Strength Index), which remains in the oversold zone, hinting at a possible technical bounce.
If Nifty 50 breaks the critical 22,000 level, the next support lies between 21,900 and 21,800. On the upside, 22,300 will act as a strong resistance.
Here are 15 crucial market insights to guide your trading strategy today:
1) Key Levels for Nifty 50 (22,119)
- Resistance levels: 22,227 | 22,287 | 22,385
- Support levels: 22,030 | 21,970 | 21,872
- Technical Outlook:
- The index formed a bearish candlestick on daily charts.
- Traded near lower Bollinger bands with average volumes.
- RSI at 22.32 (oversold, lowest since 2020).
- MACD remains below the zero line, indicating weakness.
2) Key Levels for Bank Nifty (48,114)
- Resistance levels: 48,457 | 48,630 | 48,910
- Support levels: 47,897 | 47,724 | 47,443
- Technical Outlook:
- Bearish candle formation on daily charts.
- Above-average volumes, showing strong bearish momentum.
- RSI at 35.59 and MACD below the zero line – signs of caution.
3) Nifty Call Options Data
- 23,000 strike holds the highest open interest (1.23 crore contracts), making it a key resistance.
- 22,400 strike saw the highest call writing (32.48 lakh contracts).
- 23,200 strike witnessed the most unwinding (29.53 lakh contracts).
4) Nifty Put Options Data
- 21,900 strike holds the maximum Put open interest (68.72 lakh contracts), acting as key support.
- 21,900 strike also had the highest Put writing (42.07 lakh contracts).
- 21,800 strike saw the most unwinding (19.36 lakh contracts).
5) Bank Nifty Call Options Data
- 50,000 strike has the highest open interest (12.06 lakh contracts), making it a major resistance.
- 50,000 strike also saw the most Call writing (2.89 lakh contracts).
- 49,900 strike had the highest unwinding (5,430 contracts).
6) Bank Nifty Put Options Data
- 48,000 strike has the highest open interest (9.16 lakh contracts), acting as key support.
- 48,100 strike saw the highest Put writing (88,020 contracts).
- 49,000 strike witnessed the most unwinding (31,500 contracts).
7) Institutional Fund Flow (Rs Crore)
| Category | Buy (Rs Cr) | Sell (Rs Cr) | Net (Rs Cr) |
|---|---|---|---|
| FII (Foreign Investors) | 6,345 | 6,780 | -435 |
| DII (Domestic Investors) | 5,210 | 4,980 | +230 |
FIIs were net sellers, while DIIs provided some buying support.
8) Put-Call Ratio (PCR)
- PCR increased to 0.81 (from 0.78), suggesting a neutral-to-bullish sentiment.
- A PCR above 1 indicates bullishness, while a drop below 0.7 signals bearishness.
9) India VIX (Volatility Index)
- India VIX dropped 1.06% to 13.76, staying in a low-risk zone for bulls.
10) Stocks with Long Build-up (92 Stocks)
- These stocks showed an increase in price and open interest, indicating fresh buying.
11) Stocks with Long Unwinding (20 Stocks)
- A drop in price and open interest, meaning traders are closing long positions.
12) Stocks with Short Build-up (60 Stocks)
- Falling prices with increasing open interest indicate strong bearish sentiment.
13) Stocks with Short-Covering (48 Stocks)
- These stocks saw price increases with decreasing open interest, hinting at a potential rebound.
14) High Delivery Volume Stocks
- High delivery percentages indicate investor accumulation rather than speculative trading.
15) Stocks Under F&O Ban
- No new stocks were added or removed from the F&O ban list today.
Market Outlook & Trading Strategy
- Nifty remains weak, but a technical rebound is possible given the oversold RSI.
- The Bank Nifty is under pressure, but the 48,000 level may act as strong support.
- FIIs continue selling, but low VIX keeps volatility in check.
- Put-Call Ratio shows a balanced market, meaning traders should stay cautious.
Key Takeaways
- Keep an eye on Nifty 22,000 support & 22,300 resistance.
- Watch Bank Nifty’s 48,000 support level for cues.
- Stay alert for short-covering rallies in heavily beaten-down stocks.
- Avoid aggressive buying until the market confirms a trend reversal.
By staying updated with these key market indicators, traders can navigate the volatility effectively. Stay tuned for more insights and happy trading!
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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.