Hello dear friend, in this blog post, we will try to analyse intraday trend and will try to find support and resistance in Nifty and BankNifty. So read the post till the end to know what the trading plan could be today based on the trend and levels.
After a good upside rally on Yesterday, the Market opened flat today. In first hour we can see some long unwinding from higher levels.
But as you know that today is monthly expiry, so we may see some wild swing in both the sides. So trade cautiously today.
The overall sentiment was bearish where 233 stocks are advanced, 262 are declining and 6 was unchanged in the Nifty 500 index.
In sector analysis, We can see highest weakness in Small Caps and Banking Stocks. Keep them on radar.
Stock Market Prediction Based on the chart
- After taking support near 19000, We saw fresh buying that helped Nifty to gain momentum in this upside rally. Now Nifty is trading in near the resistance zone i.e. 20100 - 20250. This range is important for further levels. A sustainable breakout from this range will trigger a long signal and Nifty may try to hit the all-time again.
- BankNifty has also supported Nifty in the last 4 trading session and manage to close above 44500. Now BankNifty is trading near the important resistance level i.e. 44500. If banknifty manage to sustain above this level, we may see some more upside movement till 46000.
Now after looking at chart, we can say that short term trend looks bullish in Nifty and Neutral in BankNifty due to short buildup on higher side.
Based on the short-term trends, we can create a mild bullish strategy in Nifty and a bearish strategy in BankNifty.
Keep one thing in mind while creating your option strategies that both the indices trading near support or resistance levels. So keep yourself prepared for some consolidation or reversal. So choose your strategy wisely.
Stock Market Prediction based on OI data
- For Nifty: 19900 is acting as immediate support with a PCR at 4.35 and resistance has shifted to 20100 with a PCR at 0.33. Max pain is at 20000.
- For BankNifty: 44200 is acting as immediate support with PCR at 3.62 and 44600 as immediate resistance with PCR at 0.33. Max pain is at 43500.
- Expiry Range:
- For Nifty = 20100 – 19900 (for today's expiry).
- For BankNifty = 44200 – 44600 ( based on current oi data. Keep following change in Oi for further levels)
The intraday trend is “Highly Bearish” in Nifty and BankNifty. (based on our trend-following sheet and setup)
Important levels and Option Strategies for November 30, 2023
Today is monthly expiry and fluctuations will be high. So you have to trade cautiously if you are new to options market.
Because of the trend, we can create bearish strategies in Nifty and BankNifty but because of expiry, I suggest we should trade limited risk strategies only:
- In Nifty, We can SELL 20000 CE and Buy 20100 CE. Max Profit = ₹2700 and max loss = ₹2300. keep following the data for further levels.
- In Banknifty, We can SELL 44200 CE and Buy 44400 CE. Max Profit = ₹1700 and max loss = ₹1300 if this trend continues and data shows bearish trend.
One thing you should keep in mind is that the above trades are based on the current data and need some adjustments if data changes. So proper knowledge and understanding are required before taking entry into any position.
If you don't know who to create and manage these option strategies, Option Strategies: A Mentorship Program would be the best online course for option trading.
I have also shared my Intraday strategies and trend-following trading setup in a small course. You can click on the below link to get access to the course.
DISCLAIMER: We are not SEBI research analysts. Views and trading strategies are posted in this weekly market newsletter only for educational purposes. There is no liability whatsoever for any loss arising from the use of this product or its contents. This product is not a recommendation to buy or sell, but rather a guideline for interpreting specified analysis methods. This information should only be used by investors and traders aware of the risk inherent in securities trading.