Nifty, Bank Nifty Trade Setup for December 15: 15 Key Things to Know

After a gap-up opening on December 12, the Nifty 50 continued its upward trend, gaining almost 0.6 percent for the second session in a row. This rally pushed the index above its short-term moving averages and the Bollinger Bands' midline. According to market experts, the Nifty has reclaimed the crucial 25,950–26,000 range, which is essential for further gains. Staying above this zone could pave the way for a move towards 26,200–26,300. That said, the reality is a bit more complicated. a decisive drop below this level might lead to consolidation, with support around 25,750–25,700.

Here are 15 key data points to consider before trading on December 15:

**1) Nifty 50 Key Levels (26,047)**

• Resistance: 26,060, 26,088, and 26,134 (based on pivot points)
• Support: 25,969, 25,941, and 25,895 (based on pivot points)
• Special Formation: The Nifty 50 formed another bullish candle on the daily charts, indicating a positive trend. The index also recovered its short-term moving averages (10- and 20-day EMAs) and the Bollinger Bands' midline, reinforcing this trend. The Relative Strength Index (RSI) trended upward but remained below the reference line, while the Stochastic RSI turned bullish. The Moving Average Convergence Divergence (MACD) stayed below the reference line, although the histogram showed diminishing weakness for another session. Overall, momentum is improving, but confirmation is still needed.

**2) Bank Nifty Key Levels (59,390)**

• Resistance: 59,509, 59,585, and 59,708 (based on pivot points)
• Support: 59,264, 59,189, and 59,066 (based on pivot points)
• Fibonacci Resistance: 59,455, 60,875
• Fibonacci Support: 58,985, 58,636
• Special Formation: After a bullish candle formation, the Bank Nifty formed a Doji pattern, signaling indecision between buyers and sellers. The banking index also reclaimed the Bollinger Bands' midline and the 10-day EMA but failed to close above the previous day’s high. The RSI showed a bullish crossover, rising to 58.21, but remained below the reference line. The MACD stayed below the reference line, with slight fading of weakness in the histogram. This suggests cautious optimism and potential consolidation.

**3) Nifty Call Options**

The 26,500 strike price shows the highest Call open interest at 1.18 crore contracts, potentially acting as a key resistance level for Nifty in the near term. Following this, the 26,200 and 26,300 strikes hold 96.74 lakh and 90.66 lakh contracts, respectively.

Maximum Call writing occurred at the 26,050 strike, with 18.61 lakh contracts added, followed by the 26,500 and 26,350 strikes, which added 14.55 lakh and 13.33 lakh contracts, respectively. The 25,900 strike saw the most Call unwinding, shedding 40.95 lakh contracts, followed by the 25,950 and 26,000 strikes, which shed 20.42 lakh and 18.99 lakh contracts, respectively.

**4) Nifty Put Options**

The 26,000 strike holds the maximum Put open interest (1.31 crore contracts), suggesting it could act as a crucial support level for the Nifty in the short term. The 25,800 and 25,900 strikes follow with 1.24 crore and 1.14 crore contracts, respectively.

The 26,000 strike saw the maximum Put writing, with an addition of 87.63 lakh contracts, followed by the 25,950 and 25,900 strikes, which added 53 lakh and 45.18 lakh contracts, respectively. The 25,350 strike experienced the most Put unwinding, shedding 3.71 lakh contracts, followed by the 25,450 and 25,400 strikes, which shed 1.25 lakh and 81,675 contracts, respectively.

**5) Bank Nifty Call Options**

The 60,000 strike holds the highest Call open interest, with 14.98 lakh contracts, potentially acting as a key resistance level for the Bank Nifty in the short term. The 59,500 and 61,000 strikes follow with 13.35 lakh and 8.37 lakh contracts, respectively.

The 60,000 strike saw the maximum Call writing (84,000 contracts added), followed by the 58,500 strike (68,075 contracts) and 58,800 strike (60,760 contracts). The 59,100 strike experienced the most Call unwinding, shedding 56,455 contracts, followed by the 59,200 and 59,500 strikes, which shed 54,810 and 49,945 contracts, respectively.

**6) Bank Nifty Put Options**

The 59,500 strike holds the maximum Put open interest (16.85 lakh contracts), suggesting it could act as a key level for the index. The 59,000 and 58,500 strikes follow with 13.19 lakh and 10.6 lakh contracts, respectively.

The 58,500 strike saw the maximum Put writing (1.06 lakh contracts added), followed by the 59,400 strike (73,010 contracts) and the 59,000 strike (65,555 contracts). The 60,000 strike experienced the most Put unwinding, shedding 55,195 contracts, followed by the 58,000 and 58,700 strikes, which shed 34,335 and 23,730 contracts, respectively.

**7) Funds Flow (Rs crore)**

(No data provided in the original article)

**8) Put-Call Ratio**

The Nifty Put-Call ratio (PCR), a measure of market sentiment, increased to 1.15 on December 12 from 0.94 in the previous session.

A rising PCR, especially above 0.7 or 1, suggests that traders are selling more Put options than Call options, generally indicating a strengthening bullish sentiment. Conversely, a ratio below 0.7 or approaching 0.5 suggests that Call selling is higher than Put selling, reflecting a bearish market mood.

**9) India VIX**

The India VIX, a gauge of market fear, declined by 2.81 percent to 10.11, its lowest closing level since October 10. This marks the fourth consecutive session of decline, remaining below all key moving averages, which is encouraging for bullish investors. Lower VIX levels typically indicate reduced uncertainty but can also increase the potential for sharp market movements in either direction.

**10) Long Build-up**

Long positions were built up in 97 stocks. An increase in both open interest (OI) and price signals the creation of long positions.

**11) Long Unwinding**

Long unwinding was observed in 10 stocks. A decrease in open interest (OI) along with a price decline indicates the liquidation of long positions.

**12) Short Build-up**

Short positions were built up in 33 stocks. An increase in OI coupled with a price decrease suggests the creation of short positions.

**13) Short-Covering**

Short-covering occurred in 72 stocks, meaning a decrease in OI along with a price increase.

**14) High Delivery Trades**

(No data provided in the original article)

**15) Stocks Under F&O Ban**

Stocks are placed under the F&O ban when derivative contracts exceed 95 percent of the market-wide position limit.

• Stocks added to F&O ban: Nil
• Stocks retained in F&O ban: Bandhan Bank
• Stocks removed from F&O ban: Sammaan Capital

*Disclaimer: The views and investment tips expressed by experts are their own. Please consult with certified experts before making any investment decisions.*