Pre-Market Analysis for Nifty 50 03 Dec 24: Key Levels, Option Chain Insights, Technical Indicators, and Predictions
Introduction
Pre market analysis sets the tone with Monday’s trading session closing, the Nifty 50 index signals a mix of opportunities and challenges. Let’s dive into the key factors shaping market sentiment and the crucial levels to watch. In this analysis, we will look at key levels for Nifty50, critical support and resistance levels, option chain analysis, and few technical indicators like RSI and EMA to provide Nifty50 Pre-Market Analysis and Predictions.
Global Cues
US Markets: The overnight performance on Wall Street showed moderate gains, with the DJI index +0.42% NDQ +0.9% and S&P 500 closing up by 0.56%. This positive sentiment may provide a supportive backdrop for Indian equities.
Asian Markets: Early trading in Asian markets indicates a bullish sentiment, with indices like the Nikkei +0.92% and Hang Seng +0.65% trading flat to slightly positive.
Key Levels for Nifty 50
Support Level
- Primary Support: 23300
- Critical Support: 23900
Resistance Level
- Immediate Resistance: 24370
- Major Hurdle: 24500
Earlier Nifty50 index closed at 24276 +144.95 (0.6%) with critical support at 23900 level and primary support at 23300 level. On the upside immediate resistance is at 24370 level and major hurdle is at 24500 level. Breaking above 24370 could trigger a bullish breakout. 23500 level will act as next resistance for Nifty50.
On the downside 24000 level followed by 23900 may act as critical support upcoming trading session. Breakdown below 23900 could trigger a bearish sentiment and the next major support will be 23300 level.
Option Chain Analysis
Call Side OI
| Strike Price | Change in OI | OI |
|---|---|---|
| 23500 | -295 | 18,601 |
| 23600 | -130 | 10,331 |
| 23700 | -547 | 11,004 |
| 23800 | -1,003 | 24,248 |
| 23900 | -6,200 | 29,304 |
| 24000 | -20,592 | 1,17,143 |
| 24100 | -5,883 | 1,20,627 |
| 24200 | -9,433 | 1,75,905 |
| 24300 | 40,017 | 2,44,298 |
| 24400 | 75,880 | 2,36,136 |
| 24500 | 13,329 | 3,07,241 |
Maximum Call OI was seen at 25000 level followed by 24800 and 24500. Maximum call writing was seen at 24800 and 25000 followed by 24600 Strike price.
Put Side OI
| Strike Price | Change in OI | OI |
|---|---|---|
| 23500 | 1,11,215 | 3,93,612 |
| 23600 | 1,57,568 | 2,62,357 |
| 23700 | 1,01,890 | 2,31,587 |
| 23800 | 38,276 | 2,61,633 |
| 23900 | 63,585 | 2,17,178 |
| 24000 | 1,82,243 | 4,59,499 |
| 24100 | 1,37,627 | 3,10,955 |
| 24200 | 1,14,969 | 2,35,333 |
| 24300 | 80,817 | 1,81,818 |
| 24400 | 17,128 | 54,754 |
Source- https://www.nseindia.com/option-chain
Maximum Put OI was seen at 23000 followed by 23500 and 24000 Strike Price. Maximum Put writing as seen at 23000 and 24000 followed by 23600 Strike Price.
Option chain data indicates that 24500 level will be the next hurdle for nifty50. As in past trading days Nifty50 took resistance at 24350 level multiple times. On Breakout of 24350-24370 level next resistance will be 24500. Put side OI data indicates that 24000 level will be the critical support for current expiry with 4,59,499 OI. On Breakdown of 24000 level 23900 will act as next support followed by 23300 as primary support.
- Calls at 24,500 shows heavy resistance, indicating it as a key hurdle.
- Strong put OI at 24000 confirms it as a crucial support level.
Technical Indicators
Relative Strength Index(RSI):
- Current Value: 64.22 (M15), 52.11 (D1)
- An RSI above 60 could indicate a bullish breakout, while a dip below 50 might signal bearish sentiment.
Exponential Moving Averages (EMA):
| EMA | Level |
|---|---|
| 10-EMA | 24045 |
| 20-EMA | 24090 |
| 50-EMA | 24373 |
| 100-EMA | 24307 |
| 200-EMA | 24580 |
Market Prediction and Strategy
Market Sentiment:
- Market is likely to be highly Volatile between 24350-24000 level.
Trading Strategy:
- Bullish: Go long above 24370 with a target of 24500.
- Bearish: Short near 24000 with a stop-loss at 23970.
Conclusion
“Nifty 50 is set for a cautious opening with clear support at 24000 and resistance at 24370. Use the option chain and technical indicators like RSI and EMA to guide your trades. Stay disciplined and follow your trading plan for a successful session.”
“Share your predictions for today’s market in the comments below!”