Trade Setup for Nov 19: NIFTY50 sustains below 200 EMA, faces resistance around 23,600

Asian markets @ 7 am

• GIFT NIFTY: 23,558.50 (+0.15%)
• Nikkei 225: 38,287 (+0.17%)
• Hang Seng: 19,699.81 (+0.63%)

U.S. market update

• Dow Jones: 43,389.60 (-0.13%)
• S&P 500: 5,893.62 (+0.39%)
• Nasdaq Composite: 18,782.89 (+0.55%)

U.S. indices ended Monday's session on a mixed note as Tesla shares continued their post-election rally. Tesla jumped more than 5% on reports that the President-elect Donald Trump will work on ways to ease regulations on self-driving cars. Meanwhile, chipmaker Nvidia's results on Wednesday will be in focus as the next catalyst for the markets.

NIFTY50

• November Futures: 23,513 (▼0.3%)
• Open Interest: 4,85,176 (▼1.0%)

After a gap-up start, the NIFTY50 index failed to sustain its opening gains and started the week on a negative note. The index slipped 0.3% and ended the day below 200 exponential moving average (EMA) amid sell-off in index heavyweight IT stocks.

The index has immediate support around 23,150 and 23,300 zone, which previously highlighted in our blog that coincides with the high of the June 2024 election month. These levels may provide pshychological support to the index in the short-term. Meanwhile, the immediate resistance for the index around 23,600 and the crucial reistance is around 23,800.

The open interest data for the 21 November expiry saw call build-up from 23,500 to 23,800 strikes, indicating resistance for the index at mutliple levels. On the other hand, the put base was seen at 23,000 and 23,500 strikes, indicating range-bound session around 23,500 zone.

SENSEX

• Max call OI: 77,500
• Max put OI: 77,500

The SENSEX also started the week on a negative note and ended the Monday’s sesssion belwo the crucial support of 200 EMA. However, the index witnessed support based buying from the lower levels of 76,300 and 76,800, reflecting support for the index around this zone.

The technical structure of the index as per daily chart remains weak with immediate resistance around 78,200 zone, while the support remains at 76,300 zone. Unless the index breaks this range with a strong candle on intraday basis, the trend may remain sideways.

The open interest for the 22 November expiry saw significant call build-up at 77,500 and 78,000 strikes, suggesting resistance for the index around these levels. On the other hand, the put base was seen at 77,500 and 77,000 strikes, indicating range-bound action around 77,500 strikes.

FII-DII activity

Stock scanner

Under F&O ban: Aarti Industries, Aditya Birla Fashion and Retail, Gujarat Narmada Valley Fertilizers & Chemicals (GNFC), Granules India 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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