Trade Setup for Muhurat Trading: Top 15 things to know before the opening bell

Indian equity markets are expected to maintain a positive bias during the Muhurat Trading session, supported by strong buying momentum and a sharp recovery in benchmark indices. The Nifty 50 has gained more than 10% over seven consecutive sessions, while technical indicators suggest that the rally could continue, although rising volatility calls for caution.

Market experts expect the Nifty to test the 25,100–25,200 resistance zone, with 25,500 emerging as the next important hurdle. On the downside, immediate support has shifted higher to 24,800, followed by the 24,600–24,400 range.

Here are 15 important market indicators, technical levels and derivatives data points investors should track before the Muhurat Trading session.

Key Highlights

• Nifty 50 gained 2% on November 6 and advanced more than 10% over seven consecutive sessions.
• The index may attempt to move towards 25,100–25,200, followed by resistance at 25,500.
• Immediate Nifty support stands at 24,800, with the 24,600–24,400 zone acting as a stronger support area.
• Bank Nifty gained 2.27%, while its RSI climbed to 74.57, indicating strong but stretched momentum.
• India VIX jumped 12.1% to 17.46, signalling higher volatility despite the bullish market trend.

1. Nifty 50 Key Levels and Technical Outlook

The Nifty 50 stood at 25,030 after staging a strong recovery on November 6. The index opened weak but gained momentum during the session, eventually closing 2% higher. It has now recorded gains for seven consecutive sessions and advanced more than 10% over that period.

Based on pivot points, the important resistance levels are 25,062, 25,213 and 25,458. The corresponding support levels are 24,571, 24,419 and 24,174.

Market experts expect the index to maintain a positive bias during Muhurat Trading, with the 25,100–25,200 range acting as an immediate hurdle. A sustained move above this zone could bring 25,500 into focus. On the downside, 24,800 is the immediate support, followed by the 24,600–24,400 range.

Nifty 50 Technical Formation

The Nifty formed a long bullish candle with a small lower wick on the daily chart. It also closed above the previous session’s high for the seventh consecutive trading session, indicating sustained buying interest.

The index remained above its 200-day exponential moving average (EMA) for the third consecutive session, while its short- and medium-term moving averages continued to move higher. It also closed above the 61.8% Fibonacci retracement level of the correction from 26,373 to 22,180.

The Relative Strength Index (RSI) climbed to 78.55, approaching the overbought zone. Meanwhile, the MACD maintained its bullish crossover, and its green histogram bar expanded for the seventh consecutive session.

These indicators point to strong upward momentum, although the elevated RSI suggests that investors should watch for possible short-term volatility or profit booking.

2. Bank Nifty Key Levels and Technical Outlook

Bank Nifty stood at 59,086 after gaining 2.27% in the November 6 session. The banking index also closed above the previous day’s high for the fourth consecutive session, supported by higher trading volumes.

According to pivot-point calculations, resistance levels stand at 59,172, 59,588 and 60,263. Support levels are placed at 57,823, 57,407 and 56,732.

Fibonacci retracement levels indicate resistance at 59,250 and 61,765, while support is placed at 56,928 and 55,600.

Bank Nifty Technical Formation

The Bank Nifty formed a bullish candlestick pattern accompanied by higher trading volumes. It decisively moved above its June swing high and approached the 78.6% Fibonacci retracement level of its correction from the record high of 61,765 to 49,955.

The RSI rose to 74.57, while the MACD continued moving higher above the zero line. Its green histogram bar expanded for the sixth consecutive session. The index also remained comfortably above its 200-day EMA, with short- and medium-term moving averages trending upward.

The technical picture remains positive, but the RSI entering overbought territory indicates that traders should remain alert to possible near-term volatility.

3. Nifty Call Options Data

Weekly options data showed the highest Call open interest at the 25,000 strike, with 1.1 crore contracts. This level could act as an important resistance point for the Nifty in the short term.

The next highest Call open interest was recorded at the 25,500 strike with 96.26 lakh contracts, followed by the 25,200 strike with 58.27 lakh contracts.

Maximum Call writing was observed at the 25,400 strike, which added 24.39 lakh contracts. The 25,500 and 25,300 strikes recorded additions of 22.04 lakh and 11.25 lakh contracts, respectively.

On the other hand, the highest Call unwinding took place at the 24,800 strike, where 40.04 lakh contracts were reduced. The 24,600 and 24,550 strikes recorded unwinding of 36.45 lakh and 34.75 lakh contracts, respectively.

4. Nifty Put Options Data

On the Put side, the 24,600 strike recorded the highest open interest at 64.46 lakh contracts, making it an important support level to monitor. It was followed by the 24,700 strike with 61.63 lakh contracts and the 24,800 strike with 50.79 lakh contracts.

Maximum Put writing was recorded at the 24,700 strike, which added 55.38 lakh contracts. The 24,800 and 24,600 strikes followed with additions of 47.71 lakh and 44.73 lakh contracts, respectively.

There was limited Put unwinding across the 24,550–25,500 strike range, suggesting that Put positions largely remained in place during the reported session.

5. Bank Nifty Call Options Data

Monthly options data showed maximum Call open interest at the 58,000 strike, with 20.65 lakh contracts. This could act as an important level for the banking index in the short term.

The 60,000 strike recorded the next highest Call open interest at 7.27 lakh contracts, followed by the 59,000 strike with 6.51 lakh contracts.

Maximum Call writing was observed at the 58,700 strike, which added 1.62 lakh contracts. The 60,000 and 60,100 strikes recorded additions of 89,160 and 56,220 contracts, respectively.

The highest Call unwinding occurred at the 58,000 strike, where 1.83 lakh contracts were reduced. The 57,800 and 59,000 strikes recorded unwinding of 75,810 and 59,670 contracts, respectively.

6. Bank Nifty Put Options Data

The 58,000 strike held the highest Put open interest in Bank Nifty monthly options, with 18.58 lakh contracts. It was followed by the 57,500 strike with 5.2 lakh contracts and the 59,000 strike with 3.99 lakh contracts.

Maximum Put writing was also concentrated at the 58,000 strike, which added 3.82 lakh contracts. The 58,500 and 59,000 strikes recorded additions of 2.31 lakh and 2.17 lakh contracts, respectively.

There was limited Put unwinding across the 57,500–60,250 strike range, indicating that traders largely maintained their existing Put positions.

7. Funds Flow: Institutional Activity

Institutional fund flows remain an important factor for understanding the direction of the Indian Stock Market. Foreign portfolio investors (FPIs) and domestic institutional investors (DIIs) can influence market momentum through their buying and selling activity.

The latest market commentary highlighted aggressive FPI buying alongside DII selling during the preceding week. However, the supplied data does not include the exact daily or weekly fund-flow figures for this section. Investors should therefore track the latest institutional activity rather than assume that the trend will continue unchanged.

8. Nifty Put-Call Ratio

The Nifty Put-Call Ratio (PCR), an indicator used to assess sentiment in the options market, increased to 1.47 on November 6 from 1.29 in the previous session.

A rising PCR above 1 is generally associated with stronger Put activity relative to Call activity and can indicate a bullish market bias. A ratio below 0.7 or moving towards 0.5 may indicate relatively stronger Call activity and weaker sentiment.

However, PCR should not be used as a standalone trading signal. Its interpretation depends on market conditions, strike-wise open interest and changes in option positions.

9. India VIX Rises 12.1% to 17.46

India VIX, commonly known as the market’s fear gauge, jumped 12.1% to 17.46. The volatility index continued its upward movement and remained above its key moving averages.

The rise in India VIX indicates that traders are expecting greater market volatility. This is important because the Nifty and Bank Nifty have rallied sharply in recent sessions, but higher volatility can lead to larger price movements in either direction.

Investors should therefore avoid assuming that strong index momentum means market risk has disappeared.

10. Long Build-up: 62 Stocks

A long build-up was observed in 62 stocks during the reported session. This market signal occurs when a stock’s price and open interest rise together.

It generally indicates that traders are opening fresh bullish positions, reflecting expectations of further price gains. However, a long build-up does not guarantee that the stock will continue moving higher.

11. Long Unwinding: 35 Stocks

Long unwinding was recorded in 35 stocks. This happens when prices decline alongside a fall in open interest, suggesting that traders are closing existing bullish positions.

The signal can indicate a reduction in buying interest or profit booking after an earlier rise. Investors should examine the underlying company’s fundamentals and broader market trend before drawing conclusions.

12. Short Build-up: 57 Stocks

A short build-up was seen in 57 stocks, where prices declined while open interest increased.

This combination generally suggests that traders are creating fresh bearish positions and expecting further weakness. Such stocks may remain under pressure if selling interest continues, although a change in sentiment can lead to short covering.

13. Short-Covering: 69 Stocks

Short-covering was observed in 69 stocks. It occurs when a stock’s price rises while open interest falls, indicating that traders are closing their existing short positions.

Short-covering can support a quick recovery in stock prices, particularly when bearish traders rush to exit their positions. However, it is different from fresh long buying and should be assessed alongside other market indicators.

14. High Delivery Trades

High delivery activity can provide an indication of investment interest in individual stocks. A higher proportion of delivery-based trades generally suggests that market participants are taking positions for more than just intraday trading.

The supplied market data does not specify the names of stocks that recorded high delivery percentages. Investors should check the latest exchange data before identifying individual opportunities.

15. Stocks Under the F&O Ban

Stocks enter the futures and options (F&O) ban period when their aggregate derivative positions cross 95% of the market-wide position limit. The restriction is intended to prevent further increases in open positions in those securities.

According to the supplied data, Kaynes Technology India was retained in the F&O ban list. No stocks were added to or removed from the list.

Traders should check the latest exchange updates before placing derivative trades, as the ban list can change depending on market-wide position limits.

What Traders Should Watch During Muhurat Trading

The technical setup for Muhurat Trading remains positive, with the Nifty and Bank Nifty showing strong upward momentum. The Nifty’s immediate resistance zone is 25,100–25,200, while 25,500 is the next important level. On the downside, 24,800 is the immediate support, followed by 24,600–24,400.

Options positioning, the rising Put-Call Ratio and bullish momentum indicators provide additional signals to monitor. At the same time, the sharp rise in India VIX and elevated RSI readings suggest that traders should remain cautious.

Conclusion

The market enters the Muhurat Trading session with a strong bullish bias after the Nifty’s rally of more than 10% over seven consecutive sessions. Buying interest, improving technical indicators and supportive options positioning have strengthened the short-term outlook.

However, rising volatility and overbought momentum indicators could lead to sharp movements. Traders should monitor key support and resistance levels, manage risk carefully and avoid making decisions based only on the traditional positive sentiment associated with Muhurat Trading.