Introduction

After a week of steady strength, Indian markets showed clear signs of fatigue on November 1, with both Nifty 50 and Bank Nifty retreating as sellers emerged at higher levels. Profit booking intensified in select heavyweights, while broader market participation thinned out ahead of the new month.

In this Trade Setup for 3 November 2025, Dhwani Patel, SEBI registered research analyst, breaks down the Nifty and Bank Nifty levels, key derivatives data, and momentum signals to help traders navigate this near-term consolidation phase effectively.

Setup 1 — Nifty 50: Key Resistance & Support Levels

Nifty Close: 25,722

• Resistance (Pivot Points): 25,888 / 25,946 / 26,038
• Support (Pivot Points): 25,703 / 25,646 / 25,553

Market Outlook:
The Nifty 50 formed a long bearish candle with an upper shadow on the daily charts — an indication of selling pressure at higher levels. The index broke below its 10-day EMA, marking a loss of short-term momentum, though it remains comfortably above the 20-, 50-, and 100-day EMAs, maintaining its medium-term uptrend.

The index also fell below the 23.6% Fibonacci retracement level of its October rally, signaling a potential shift toward a corrective phase. The RSI dropped to 57.84, and the Stochastic RSI confirmed a bearish crossover, suggesting waning strength. The MACD is on the verge of a negative crossover, with its histogram flattening near the zero line — often a precursor to mild weakness.

Interpretation:

• Resistance zone: 25,946–26,038
• Support zone: 25,646–25,553
• A decisive break below 25,700 could trigger a deeper retracement toward 25,500.
• Sustaining above 25,888 would help regain strength.

For followers of the Nifty futures trading guide, the bias remains cautious in the short term — traders should stay light and focus on quick trades with tight stop-losses.

Setup 2 — Bank Nifty: Key Resistance & Support Levels

Bank Nifty Close: 57,776

• Resistance (Pivot Points): 58,124 / 58,266 / 58,494
• Support (Pivot Points): 57,668 / 57,526 / 57,298
• Resistance (Fibonacci Retracement): 58,739 / 60,148
• Support (Fibonacci Retracement): 57,394 / 56,662

Market Outlook:
The Bank Nifty formed a bearish candle for the second consecutive day, accompanied by above-average volumes — a clear indication that traders are booking profits near the higher range.

The index also slipped below its 10-day EMA, signaling near-term weakness. However, it still trades comfortably above its 20-, 50-, and 100-day EMAs, suggesting that the larger trend remains positive.

The RSI, at 62.29, and the Stochastic RSI both exhibited bearish crossovers, while the MACD histogram continued to decline, though the overall signal line remains positive. These patterns collectively suggest temporary weakness while the broader bias stays upward.

Interpretation:

• Resistance zone: 58,266–58,494
• Support: 57,526–57,298
• A breakdown below 57,500 could intensify profit booking toward 57,000–56,800.
• If the index reclaims 58,200, buyers could regain control.

For index futures trading strategies India, it’s best to maintain a sell-on-rise approach until momentum indicators show signs of recovery.

Setup 3 — Nifty Call Options Data

• Max Call OI: 26,000 (1.52 crore contracts) → key resistance
• Next Resistances: 26,200 (1.09 crore), 25,900 (1.04 crore)
• Fresh Call Writing: 25,900 (+34.8L), 26,000 (+30.2L), 26,100 (+21.1L)

Interpretation:
Call writers are building strong resistance at 25,900–26,100, which may cap upside attempts in the near term. The bias is gradually tilting toward consolidation within a broader range.

Setup 4 — Nifty Put Options Data

• Max Put OI: 25,600 (1.17 crore contracts) → key support
• Next Supports: 25,500 (0.94 crore), 25,400 (0.83 crore)
• Fresh Put Writing: 25,600 (+28.4L), 25,500 (+22.7L)

Interpretation:
Put writers have shifted their base lower from 25,800 to 25,600, reflecting cautious sentiment. Traders seem to be hedging against potential dips in the short term.

Setup 5 — Bank Nifty Call Options Data

• Max Call OI: 58,500 (12.48L) → key resistance
• Next Resistances: 59,000 (11.21L), 58,800 (9.36L)
• Fresh Call Writing: 58,000 (+3.41L), 58,500 (+2.27L)

Interpretation:
Heavy Call writing around 58,000–58,500 reflects trader caution. A sustained move below 57,700 could add more pressure, while a breakout above 58,500 is needed to restore bullish momentum.

Setup 6 — Bank Nifty Put Options Data

• Max Put OI: 57,500 (10.42L) → firm base
• Next Supports: 57,000 (8.56L), 56,500 (7.29L)
• Fresh Put Writing: 57,500 (+2.94L), 57,000 (+2.12L)

Interpretation:
Support remains visible around 57,500, but if this level breaks, the index may slip toward 57,000–56,600 quickly.

Setup 7 — India VIX (Volatility Index)

India VIX: 12.14 (+1.5%)

Volatility rose for the second consecutive session, reflecting growing nervousness among traders. The fear gauge remains below the 13–14 risk zone, but continued up-moves in VIX could tighten risk-reward conditions for long positions.

As Dhwani Patel puts it,
“Markets lose patience faster than momentum — and that’s when discipline matters most.”

Setup 8 — Sectoral Trends

• Banking & Financials: Facing mild profit booking; support likely near lower zones.
• IT & Pharma: Gaining traction as defensive bets rise.
• Metals & Realty: Weakening momentum amid risk aversion.
• Auto & FMCG: Consolidation phase with selective buying interest.

For swing trading strategies India, this rotation suggests traders should shift focus to low-beta or defensive sectors until trend clarity returns.

Setup 9 — Intraday Playbook

Index	Bullish Above	Bearish Below	Neutral Zone
Nifty 50	25,888	25,646	25,700–25,850
Bank Nifty	58,124	57,526	57,700–58,000

Strategy:

• Maintain a short bias below 25,700 in Nifty and 57,700 in Bank Nifty.
• Avoid aggressive longs until clear reversal patterns form.
• Focus on capital protection — this is a time for precision, not prediction.

Setup 10 — Dhwani Patel’s View

“Momentum is fading, but the structure remains healthy. Markets often test conviction before rewarding patience.”

The Trade Setup for 3 November 2025 indicates short-term caution, with both indices under pressure. However, broader moving averages remain supportive, suggesting that corrections could be limited if key supports hold.

Key Takeaways

• Nifty Range: 25,550–25,950
• Bank Nifty Range: 57,500–58,200
• Market Bias: Cautious-to-neutral
• Strategy: Sell on rise; stay defensive; focus on risk control.

Final Thoughts

The market is transitioning from a phase of momentum to a phase of consolidation. Such setups are opportunities for tactical traders but demand strict discipline and position management.

As Dhwani Patel often emphasizes —

“Bull markets rest — they don’t vanish. The smart money doesn’t panic; it prepares.”

Disclosure & Disclaimer: dhwani patel (SEBI Registration No. INH200008608) is a SEBI registered research analyst. This report is for educational and informational purposes only and should not be interpreted as investment or trading advice. Market participation carries risk; always consult a financial professional before making trading decisions.