Trade Setup for January 13: Top 15 Things to Know Before the Opening Bell
As markets remain in a bearish grip, traders and investors should carefully track key levels and trends for the Nifty 50 and Bank Nifty ahead of the January 13 opening bell. Here’s a detailed breakdown:
1. Nifty 50 Analysis
Trend: The Nifty 50 extended its downtrend for the third consecutive session, closing 0.4% lower on January 10 with above-average volumes.
Key Support Levels:
Friday’s Low: 23,350 (critical short-term support).
November Low: 23,263, followed by the 23,000 mark, a significant support zone.
Key Resistance Levels:
23,600-23,700 Zone: Includes Friday’s high and the 200-day EMA. A break above this could give bulls some momentum.
Technical Indicators:
RSI: At 37.8, showing bearish momentum with a negative crossover.
MACD: Below the zero line, confirming a downtrend.
Candlestick Pattern: Bearish continuation with six consecutive sessions of lower highs.
2. Bank Nifty Analysis
Trend: Bank Nifty remains in bearish territory, with lower highs for six sessions and a long bearish candlestick pattern on daily charts.
Key Levels:
Support (Pivot Points): 48,624, 48,423, and 48,098.
Resistance (Pivot Points): 49,275, 49,476, and 49,801.
Fibonacci Levels: Resistance at 50,000 and 50,865; support at 47,864 and 46,078.
Technical Indicators:
RSI: At 28.50, signaling an oversold zone and a potential for a technical bounce.
EMA Cross: The 10-day EMA is below the 200-day EMA, reaffirming the bearish sentiment.
3. Nifty Call Options Data
Key Resistance Levels:
24,500 Strike: Maximum Call OI of 91.24 lakh contracts.
24,000 Strike: Second-highest Call OI of 83.4 lakh contracts.
Significant Call Writing:
24,000 strike added 40.12 lakh contracts.
23,800 and 23,500 strikes added 30.61 lakh and 26.3 lakh contracts, respectively.
4. Nifty Put Options Data
Key Support Levels:
22,500 Strike: Maximum Put OI of 61.85 lakh contracts.
23,000 Strike: Second-highest Put OI of 45.79 lakh contracts.
Significant Put Writing:
22,400 strike added 21.44 lakh contracts.
23,400 and 23,000 strikes added 15.53 lakh and 14.28 lakh contracts, respectively.
5. Bank Nifty Call Options Data
Key Resistance Levels:
51,000 Strike: Maximum Call OI of 20.21 lakh contracts.
50,000 Strike: Second-highest Call OI of 17.5 lakh contracts.
Significant Call Writing:
49,000 strike added 6.65 lakh contracts.
50,000 and 49,500 strikes added 6.64 lakh and 3.78 lakh contracts, respectively.
6. Bank Nifty Put Options Data
Key Support Levels:
46,000 Strike: Maximum Put OI of 15.03 lakh contracts.
49,000 Strike: Second-highest Put OI of 13 lakh contracts.
Significant Put Writing:
45,500 strike added 1.89 lakh contracts.
46,500 and 46,000 strikes added 1.79 lakh and 1.39 lakh contracts, respectively.
7. Put-Call Ratio (PCR)
Nifty PCR: Dropped to 0.88 from 0.92, reflecting higher Call writing than Put writing, which indicates a bearish sentiment.
8. India VIX
The India VIX rose 1.76% to 14.92 on Friday, maintaining levels above 14. Higher volatility signals an unfavorable scenario for bulls.
9. Special Formation Observations
Nifty 50:
Trading below all major moving averages, including the 200-day EMA.
Holding the lower band of Bollinger Bands, indicating a bearish bias.
Bank Nifty:
Oversold RSI levels may trigger a temporary bounce.
10. Sectoral Outlook
Keep an eye on sectors like IT and FMCG, as they may provide defensive plays amidst overall bearish trends.
11. Global Cues
Monitor global markets and macroeconomic developments, as they will influence opening trends.
12. FIIs & DIIs
FII and DII activity will be key to understanding liquidity and sentiment shifts.
13. Dollar Index and Crude Oil
Rising crude oil prices and a stronger dollar index could put additional pressure on Indian equities.
14. Key Earnings Reports
Earnings from key companies might provide stock-specific opportunities.
15. Actionable Strategy
For Bulls: Wait for a breakout above 23,700 for any significant upward momentum.
For Bears: Look to sell rallies near resistance zones, especially if 23,350 is breached.
For more insights and updates, visit TradingThought.com.