Trade Setup for Nov 12: BANK NIFTY reclaims 21 EMA, all eyes on 52,500 mark

Asian markets @ 7 am

• GIFT NIFTY: 24,242.5 (+0.09)
• Nikkei 225: 39,833.61 (+0.76%)
• Hang Seng: 20,373.07 (-0.26%)

U.S. market update

• Dow Jones: 43,988 (▲0.5%)
• S&P 500: 5,995 (▲0.3%)
• Nasdaq Composite: 19,286 (▲0.0%)

U.S. indices ended Monday's session on a positive note, with the Dow Jones and S&P 500 closing at record highs. Banking stocks remained in focus, while technology stocks saw losses with the exception of Tesla. Meanwhile, Wall Street is awaiting the release of October inflation data, which will be released on Wednesday.

NIFTY50

• November Futures: 24,226 (▲0.0%)
• Open Interest: 4,50,535 (▼0.3%)

The NIFTY50 extended the range-bound movement and surrendered all its intraday gains to end the day flat. However, the index protected the 24,000 mark on the closing basis, establishing it as an immediate support zone.

On the daily chart, the index is currently range-bound wihtin previous week’s range with immediate resistance around 24,600 and support around 24,800. Unless the index breaks this range during intraday or on daily closing basis with a strong candle, the trend may remain sideways.

Meanwhile, the open interest (OI) data for the 14 November expiry has substantial call base at 24,500 and 24,300 strikes, indicating that index may face resistance around these levels. Conversely, the put base has been established at 24,000 and 23,700, indicating support for the index around these levels.

BANK NIFTY

• November Futures: 52,085 (▲0.5%)
• Open Interest: 1,72,742 (▼2.3%)

The BANK NIFTY index ended the Monday’s session in green and outperformed the benchmark indices, led by broad based buying in the banking heavyweights.

The broader technical structure of the BANK NIFTY remains range-bound from the past three weeks. However, the index reclaimed its 21 and 50 exponential moving average (EMAs) on the daily chart, indicating strength from the lower levels. Meanwhile, the immediate support for the index is around 51,000 zone, while the resistance is between 52,600 and 52,800 zone.

The open interest positioning of the participants for the 13 November expiry has highest call base at 52,500 and 52,000 strikes, suggesting resistance around these levels. On the flip side, the put base stands at 51,000 and 51,500 strikes, marking these levels as immediate support for the index. Additionally, as shown in the image below of change in open interest, the index witnessed significant put additions from 51,300 to 51,700 strikes and the the call unwinding was seen at 52,500 strike.

FII-DII activity

Stock scanner

Long build-up: NIL

Under F&O ban: Aarti Industries, Aditya Birla Fashion and Retail, Granules India, Hindustan Copper and Manappuram Finance

Added under F&O ban: Aarti Industries and Hindustan Copper

In Futures and Options or F&O, long build-up means an increase in Open Interest (OI) along with an increase in price, and short build-up means an increase in Open Interest(OI) along with a decrease in price.

Source: Upstox and NSE.

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