Stock Market Outlook: Key Insights before opening bell : NIFTY 50 Trade Setup
Date : 21 Jan 2025
Nifty 50 index has formed a Bullish Hammer chart pattern on daily timeframe and showing some bottom formation. Nifty 50 consistently faced resistance in the 23,350-23,400 zone. If the index manages to close and sustain above this zone, an upward journey towards 23,600 is possible in the upcoming sessions.
Here are 11 key insights we’ve gathered to help you identify potential profitable trading opportunities:
1. Nifty 50 Chart
2. India VIX: The volatility index, India VIX, which measures expected market volatility, jumped 4.24 percent to 16.42, extending its upward trend for the third consecutive session and causing further discomfort for bulls. The bulls need to remain cautious.
3. Nifty OI (Open Interest)
Open Interest (OI) in the Nifty represents the total number of outstanding derivative contracts, such as futures and options, that have not yet been settled. It’s a crucial metric for analyzing market sentiment, trends, and potential price movements in the Nifty index.
Key points about Nifty Open Interest:
- Rising OI with Rising Price: Indicates fresh buying or bullish sentiment.
- Rising OI with Falling Price: Suggests fresh selling or bearish sentiment.
- Declining OI with Rising Price: Reflects short covering.
- Declining OI with Falling Price: Implies long unwinding.
4. Stocks Under BAN (MWPL) : These securities have exceeded 95% of the market-wide position limit (MWPL), leading to their inclusion in the ban list. During the ban period, traders are permitted to decrease their positions through offsetting trades but are restricted from initiating new positions in these contracts. The ban is lifted only when the open interest falls below 80% of the MWPL.
5. Nifty Moving Average Report
6. Bank Nifty Moving Average Report
7.Nifty Buildup Report : Nifty buildup analysis is a way to assess market sentiment by analyzing open interest (OI) and price movements.
8. Nifty Gainers/Losers Report : Nifty Gainers and Losers” refers to the stocks within the Nifty 50 index that have experienced the highest gains (gainers) or the largest declines (losers) in their stock prices during a specific trading session.
9. Nifty Futures Open Interest
10. Nifty Bank Futures Open Interest
11. IV Charts
Implied Volatility (IV) charts are graphical representations that display the market’s expectations of future volatility for a specific stock, index, or option.
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