Trade Setup for Nov 26: NIFTY50 reclaims 21 EMA, forms support around 24,000

Asian markets @ 7 am

• GIFT NIFTY: 24,290.50 (-24%)
• Nikkei 225: 38,209.72 (-1.47%)
• Hang Seng: 19,113.19 (-20%)

U.S. market update

• Dow Jones: 44,736.57 (+0.99%)
• S&P 500: 5,987.29 (+0.30%)
• Nasdaq Composite: 19,054.89 (+0.27%)

NIFTY50

• November Futures: 24,273 (▲1.7%)
• Open Interest: 3,73,096 (▼6.8%)

The NIFTY50 index extended the positive momentum for the second day in a row and reclaimed the 21 day exponential average (EMA), forming a doji candlestick pattern on the daily chart.

A doji is a neutral candlestick pattern, indicating indecision at current levels. Traders can monitor the high and the low of the doji pattern. A close above or below the high of the doji will provide further directional clues. Meanwhile, the immediate resistance for the index is around 24,600.

The open interest (OI) data for the 28 November expiry has highest call OI at 24,500 and 24,300 strikes, indicating that the index may face resistance around these levels. On the flip side, the index has put base at the 24,000 and 24,300 strikes, suggesting range-bound movement around 24,300.

SENSEX:

• Max call OI: 80,000
• Max put OI: 74,000

The SENSEX started the week on a strong note, extending Friday’s gains and faced resistance around 50 day EMA. The index also formed a doji candlestick pattern on the daily chart, reflecting indecision.

On the daily chart, the index has immediate resitance around 81,500 and 50 EMA, while the support is visible around 21 EMA and 78,700. With the short-term momentum turning in the favour of bulls, unless the index slips below the 78,700, the trend may remain sideways to bullish.

The open interest (OI) data for the 29 November expiry has highest put OI at 80,000 strike, suggesting support for the index around this zone. On the contrary, the call base was seen at 81,000 strike, indicating resistance for the index around this zone.

FII-DII activity

Stock scanner

Short build-up: Alkem Laboratories and JSW Steel

Under F&O ban: Aarti Industries, Gujarat Narmada Valley Fertilisers & Chemicals (GNFC) and Granules

Out of F&O ban: Adani Enterprises , Granules India, Hindustan Copper, Indraprastha Gas and National Aluminium

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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