As we enter Samvat 2081, traders are gearing up for Muhurat trading with a cautious outlook. The Nifty 50 has continued its downtrend, affected by global market weaknesses, and is currently trading below key moving averages. Here’s a detailed look at 15 critical factors that could influence your trades today.
1. Nifty 50 Key Levels
- Current Level: 24,205
- Resistance Levels: 24,326, 24,374, and 24,450
- Support Levels: 24,174, 24,127, and 24,050
- Analysis: A drop below the immediate support of 24,100 could push the index down to 23,900. On the upside, 24,500 is likely a key hurdle.
2. Technical Patterns on Nifty
- Daily Chart: A bearish candlestick pattern has formed, with a lower high-lower low structure and consistent trading below the 20-, 50-, and 100-day EMAs.
- Weekly Chart: A small bearish candle with a long upper shadow suggests selling pressure at higher levels.
3. Bank Nifty Key Levels
- Current Level: 51,475
- Resistance Levels: 51,862, 52,025, and 52,287
- Support Levels: 51,337, 51,175, and 50,912
- Fibonacci Resistance: 52,330 and 52,835
- Fibonacci Support: 51,266 and 50,274
4. Technical Patterns on Bank Nifty
- Daily Chart: A bearish candlestick with a long upper and minor lower shadow, reflecting selling pressure.
- Weekly Chart: Despite recent correction, the weekly candle shows a 1.35% gain with a bullish candlestick pattern.
5. Nifty Call Options Data
- Maximum Open Interest: Concentrated at the 24,200 strike, suggesting a key resistance level.
- Call Writing: Strongest at 24,200, followed by 24,300.
- Call Unwinding: Seen at 24,600, indicating potential for bearish sentiment.
6. Nifty Put Options Data
- Maximum Open Interest: Concentrated at the 24,200 strike, which could act as a key support.
- Put Writing: Strongest at 24,200, with additional interest at 23,800.
7. Bank Nifty Call Options Data
- Maximum Open Interest: 52,000 strike, marking short-term resistance.
- Call Writing: Most active at the 52,500 strike.
8. Bank Nifty Put Options Data
- Maximum Open Interest: Found at the 51,500 strike, suggesting a support level for Bank Nifty.
9. Put-Call Ratio (PCR)
- Current Level: Nifty PCR increased to 1.05 on October 31.
- Interpretation: A PCR above 1 indicates a buildup of bullish sentiment, though a fall below 0.7 would suggest a shift to bearish sentiment.
10. India VIX (Volatility Index)
- Current Level: India VIX climbed by 0.26% to 15.55, hitting a two-and-a-half-month high.
- Implication: Rising VIX reflects higher market volatility, so cautious trading is advised until VIX settles around 12-13.
11. Fund Flow Analysis (Rs Crore)
- Reviewing fund inflows and outflows can give additional market sentiment insights.
12. Sectoral Outlook
- Long Build-up: Three specific stocks showed an increase in open interest and price, hinting at long positions building up.
13. Short Build-up
- Sectors witnessing high short build-up activity could be under pressure and might offer shorting opportunities.
14. Sentiment Indicators
- Keep an eye on the market breadth, as rising market breadth alongside the index could signify bullish undercurrents.
15. Strategy for Muhurat Trading
- Focus on Key Levels: Nifty near 24,200 and Bank Nifty around 51,500 are critical. Breaks below support could signal further downside.
- Watch for Volatility: With India VIX elevated, expect rapid price swings. Keep positions light and have stop-losses in place.
With these insights, you can better navigate the trading landscape on this auspicious day. Happy Muhurat trading, and may Samvat 2081 bring prosperity and success!
