Market Overview

Indian markets extended their positive momentum on Wednesday, with the Nifty 50 registering its third consecutive day of gains as investor sentiment strengthened across sectors. The index opened with a healthy gap-up and sustained higher levels throughout the session, driven by robust buying interest in banking, IT, and metal counters.

The Nifty 50 closed 83 points higher at 25,876, while the Bank Nifty added 133 points to end at 58,275. Both indices remained resilient, supported by favorable global cues and consistent institutional inflows.

Broader market indices also stayed firm, with the Nifty Midcap 100 rising 0.58% and the Nifty Smallcap 100 up 0.42%, indicating strong participation across segments.

Setup 1 — Nifty 50: Key Resistance & Support Levels

Nifty Close: 25,876

• Resistance (Pivot Points): 25,922 / 25,959 / 26,017
• Support (Pivot Points): 25,805 / 25,769 / 25,710

Market View:

The Nifty 50 formed a bullish candle with upper and lower shadows after a gap-up opening, signaling a continuation of the prevailing uptrend. Trading volumes remained above average, confirming strong participation.

The index stayed above all key moving averages and the midline of the Bollinger Band, highlighting sustained strength. Momentum indicators also improved — the RSI climbed to 61.27, nearing a bullish crossover zone, while the Stochastic RSI sustained its positive bias.

Although the MACD remains below the signal line, the histogram shows diminishing negative momentum — a sign of steady improvement.

Outlook: The setup favors continued bullish momentum. Sustaining above 25,900 could open the door toward 26,000–26,100, while support lies at 25,700.

Setup 2 — Bank Nifty: Key Resistance & Support Levels

Bank Nifty Close: 58,275

• Resistance (Pivot Points): 58,446 / 58,526 / 58,654
• Support (Pivot Points): 58,190 / 58,111 / 57,982
• Resistance (Fibonacci Retracement): 58,735 / 60,142
• Support (Fibonacci Retracement): 57,394 / 56,662

Market View:

The Bank Nifty ended marginally higher after showing early signs of consolidation. A Bearish Belt Hold-like pattern emerged on the daily chart following a sustained rally since last Friday.

Despite the mild pause, the index closed 0.23% higher, comfortably maintaining its position above the falling resistance trendline and all major moving averages.

The RSI (64.44) continues to edge higher, moving close to a bullish crossover zone, while the Stochastic RSI sustains its positive crossover. The MACD remains below the reference line, but the histogram reflects fading weakness, hinting at steady momentum buildup.

Outlook: The banking index is expected to remain stable above 57,900, with potential upside targets around 58,600–58,800.

Setup 3 — Nifty Call Options Data

The weekly derivatives data reveals strong positioning around higher strike zones:

• Maximum Call OI: 26,000 strike (68.31 lakh contracts) — key resistance.
• Followed by: 26,500 (62.24 lakh contracts) and 25,900 (44.49 lakh contracts).
• Maximum Call Writing: Seen at 26,700 (+24.34 lakh), 25,900 (+22.47 lakh), and 26,400 (+18.2 lakh).
• Maximum Call Unwinding: Occurred at 25,700 (-16.22 lakh), followed by 25,600 (-8.23 lakh) and 25,500 (-6.56 lakh).

Interpretation:
The 26,000 strike remains a strong resistance area for the near term, with fresh call writing indicating limited upside until a breakout occurs above this level.

Setup 4 — Nifty Put Options Data

• Maximum Put OI: 25,800 strike (76.08 lakh contracts) — key support.
• Followed by: 25,500 (60.32 lakh contracts) and 25,600 (55.69 lakh contracts).
• Maximum Put Writing: Seen at 25,800 (+61.49 lakh), 25,900 (+44.71 lakh), and 25,850 (+33.45 lakh).
• Put Unwinding: Minimal activity between 25,200–26,700 strikes.

Interpretation:
Put writers are aggressively building positions near 25,800–25,900, suggesting strong support and confidence in the ongoing uptrend.

Setup 5 — Bank Nifty Call Options Data

• Maximum Call OI: 58,500 strike (15.16 lakh contracts) — near-term resistance.
• Followed by: 58,000 (13.37 lakh) and 60,000 (11.48 lakh).
• Maximum Call Writing: Seen at 58,400 (+99,890), 59,500 (+78,330), and 58,600 (+69,790).
• Maximum Call Unwinding: Observed at 58,000 (-1.61 lakh), 58,100 (-1.18 lakh), and 58,200 (-1.08 lakh).

Interpretation:
Call writers remain active near 58,400–58,600, signaling potential resistance, but the overall setup still favors gradual strengthening above 58,000.

Setup 6 — Bank Nifty Put Options Data

• Maximum Put OI: 58,500 strike (15.54 lakh contracts) — key support zone.
• Followed by: 58,000 (14.81 lakh) and 57,000 (12.18 lakh).
• Maximum Put Writing: Seen at 58,500 (+1.18 lakh), 58,600 (+90,090), and 58,000 (+79,730).
• Maximum Put Unwinding: Observed at 56,700 (-26,145), 57,600 (-25,655), and 58,200 (-17,395).

Interpretation:
Aggressive put writing around 58,000–58,500 suggests strong positional support, which could cushion any short-term pullbacks.

Setup 7 — Put-Call Ratio (PCR)

The Nifty Put-Call Ratio (PCR) increased to 1.23 on November 12, up from 1.08 in the previous session.
A higher PCR, typically above 1, implies traders are selling more Put options than Calls — reflecting a strengthening bullish sentiment in the market.

Interpretation:
Rising PCR levels confirm improved confidence among buyers, hinting at a continuation of the upward momentum.

Setup 8 — India VIX

The India VIX, India’s volatility index, declined by 3.04% to 12.11, indicating reduced market fear and higher comfort for bulls.
A further drop below 11 levels could enhance the probability of a sustained uptrend.

Interpretation:
Falling volatility levels combined with steady options data indicate a favorable risk-reward setup for long positions.

Setup 9 — Strategy for the Day by Dhwani Patel

• Continue adopting a buy-on-dips approach above 25,700.
• Look for momentum confirmation above 25,950–26,000 in Nifty.
• In Bank Nifty, hold long positions above 58,000 with targets of 58,600–58,800.
• Use strict stop-losses near 25,700 (Nifty) and 57,900 (Bank Nifty) to manage risk.

Key Takeaways

Index	Bias	Bullish Above	Bearish Below	Range
Nifty 50	Bullish	25,900	25,700	25,700–26,000
Bank Nifty	Positive	58,200	57,900	57,900–58,800

Dhwani Patel’s Market Insight

“The index structure remains firmly positive as buyers continue to defend crucial support zones. Traders should stay aligned with the trend and trail stop-losses to protect profits while eyeing breakout levels for confirmation.”

Disclosure & Disclaimer: Dhwani Patel (SEBI Registration No: INH200008608) is a SEBI-registered Research Analyst. This content is prepared for educational and informational purposes only and should not be interpreted as investment advice. Trading and investing in securities carry market risks; please consult a certified financial advisor before taking investment decisions.