By Vineet Kumar 
Trade Setup for Friday: Top Things to Know Before the Opening Bell
The markets remain volatile, and understanding key levels and trends is crucial to staying ahead. Here’s your comprehensive trade setup for Friday, covering Nifty 50, Bank Nifty, and options data to help you make informed decisions.
Nifty 50 Analysis
The Nifty 50 has been under pressure for the past four sessions, declining by 1% on December 19 due to the Federal Reserve’s hawkish stance on 2025 rate cuts. Despite the sell-off, the index managed to defend the 23,900 level on a closing basis.
Support Levels:
23,891, 23,859, and 23,808 (Pivot Points).
23,700 (200-day EMA).
Resistance Levels:
23,994, 24,025, and 24,077 (Pivot Points).
24,050 (50% Fibonacci retracement).
24,350 (Key moving averages – 10, 20, and 100 DEMA).
Special Formation:
The Nifty formed a bullish candlestick pattern with a minor upper shadow, indicating some buying interest. The index is trading near the lower Bollinger Band, signaling potential support. However, momentum indicators like RSI (40) and MACD are showing a negative crossover, reflecting underlying weakness.
—
Bank Nifty Analysis
The Bank Nifty also declined by 1% and is nearing the lower band of its Bollinger Bands. The index is trading below all major moving averages except the 200-day EMA, indicating bearish momentum.
Support Levels:
51,342, 51,218, and 51,017 (Pivot Points).
50,000 (Maximum Put OI).
Resistance Levels:
52,124 and 52,684 (Fibonacci retracement).
54,000 (Maximum Call OI).
Special Formation:
A bullish candlestick pattern with shadows on both sides suggests heightened volatility. Negative signals from RSI and MACD persist.
—
Options Data Analysis
Nifty Call Options
Key Resistance Levels:
25,000 (Maximum OI: 1.13 crore contracts).
24,500 and 25,500 (Significant OI).
Major Call Writing:
At 25,000, 24,000, and 25,500 strikes.
Nifty Put Options
Key Support Levels:
24,000 (Maximum OI: 82.47 lakh contracts).
23,000 and 23,500 (Significant OI).
Major Put Writing:
At 23,000, 22,500, and 24,000 strikes.
Bank Nifty Call Options
Key Resistance Levels:
54,000 (Maximum OI: 41.87 lakh contracts).
53,500 and 53,000 (Significant OI).
Major Call Writing:
At 51,500, 52,000, and 51,600 strikes.
Bank Nifty Put Options
Key Support Levels:
50,000 (Maximum OI: 16.55 lakh contracts).
51,000 and 51,500 (Significant OI).
Major Put Writing:
At 51,500, 49,500, and 51,300 strikes.
—
Put-Call Ratio (PCR)
The Nifty PCR rose to 0.91 on December 19, up from 0.55 in the previous session.
A PCR above 0.7 indicates more Put selling, hinting at a bullish sentiment.
If PCR falls below 0.7, bearish sentiment may dominate.
—
Final Thoughts
The markets are likely to consolidate in the near term, with critical support at 23,900 for the Nifty and 51,000 for Bank Nifty. A break below these levels could trigger further downside, while resistance at 24,050 and 24,350 for the Nifty and 52,000 for Bank Nifty will be key hurdles for any recovery.
Stay cautious and keep an eye on options data and momentum indicators to gauge the market’s next move.
For more insightful analysis and updates, visit TradingThought.
My brother recommended I may like this website. He was entirely right. This put up actually made my day. You cann’t consider simply how a lot time I had spent for this info! Thank you!
Thanks
I’ve learn several good stuff here. Definitely price bookmarking for revisiting. I surprise how so much attempt you put to make the sort of great informative website.
My brother suggested I might like this website. He was once totally right. This put up actually made my day. You cann’t consider simply how much time I had spent for this information! Thanks!
You got a very wonderful website, Sword lily I observed it through yahoo.
What i do not understood is if truth be told how you’re now not actually much more smartly-appreciated than you may be now. You’re so intelligent. You understand therefore significantly when it comes to this matter, produced me individually imagine it from a lot of varied angles. Its like women and men are not interested unless it is one thing to accomplish with Girl gaga! Your own stuffs outstanding. Always take care of it up!
Absolutely pent articles, Really enjoyed looking at.
fantastic post, very informative. I wonder why the other experts of this sector don’t notice this. You should continue your writing. I am confident, you have a huge readers’ base already!
It is appropriate time to make some plans for the long run and it’s time to be happy. I’ve read this submit and if I may just I desire to recommend you some attention-grabbing issues or suggestions. Perhaps you can write next articles referring to this article. I wish to learn more issues about it!
Do you mind if I quote a couple of your articles as long as I provide credit and sources back to your webpage? My blog is in the very same niche as yours and my visitors would truly benefit from some of the information you present here. Please let me know if this alright with you. Thanks!
Hi Laurion,
Thank you for reaching out! I appreciate your interest in my articles. You’re welcome to quote short excerpts from my posts as long as proper credit and a direct link to the original article on TradingThought.com are provided.
Please avoid republishing full articles without prior permission.
Best regards,
Vineet Kumar
TradingThought.com