Trade Setup for April 28: Key Market Indicators Ahead of F&O Expiry Day

Nifty 50 Bounces Back with 0.8% Gains Amid Bullish Sentiment

The Nifty 50 index snapped its three-day downtrend and rebounded with a 0.8% gain on April 27, a day ahead of the monthly F&O expiry session. This bounce back is attributed to the formation of a bullish candle, with the index moving back above short-term moving averages, and the likely continuation of a higher high–higher low pattern.

Key levels to watch in the near term include the 24,200–24,300 zone, which could act as a crucial hurdle zone if the index extends its rally. On the downside, immediate support is placed at 23,950, followed by 23,800 as a key support level, according to experts.

Market Momentum Improves

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The RSI moved upward, though it remained below the signal line, while the MACD stayed above both the zero and signal lines. However, the histogram's green bars continued to shrink for the fourth consecutive session. This indicates a cautiously improving momentum in the market.

Key Levels for Nifty 50 and Bank Nifty

Options Data

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• Nifty Call Options: The 24,500 strike holds the maximum Call open interest (1.06 crore contracts), which can act as a key resistance level for the Nifty in the short term.
• Nifty Put Options: The maximum Put open interest was seen at the 24,000 strike (1.13 crore contracts), which can act as a key support level for the Nifty in the short term.
• Bank Nifty Call Options: The 57,000 strike holds the maximum Call open interest (8.97 lakh contracts), which can act as a key resistance level for the index in the short term.
• Bank Nifty Put Options: The maximum Put open interest was seen at the 55,000 strike (8.07 lakh contracts), which can act as a key support level for the index.

Funds Flow and Put-Call Ratio

• Funds Flow: Data is not available.
• Put-Call Ratio: The Nifty Put-Call ratio (PCR) climbed to 1.00 on April 27, indicating a firming up of a bullish sentiment in the market.

India VIX and Volatility

India VIX, which measures expected market volatility, declined 6.77% to 18.38 and fell below short- and medium-term moving averages, signalling comfort for bulls. A further decline towards the 16–15 levels is necessary to bring bulls back into a healthier territory.

Stocks with Significant Open Interest and Price Movement

• Long Build-up: 81 stocks saw an increase in open interest (OI) and price, indicating a build-up of long positions.
• Long Unwinding: 17 stocks saw a decline in OI along with a fall in price, indicating long unwinding.
• Short Build-up: 26 stocks saw an increase in OI along with a fall in price, indicating a build-up of short positions.
• Short-Covering: 94 stocks saw short-covering, meaning a decrease in OI, along with a price increase.

High Delivery Trades and F&O Ban

• High Delivery Trades: A high share of delivery reflects investing (as opposed to trading) interest in a stock.
• Stocks Under F&O Ban: Securities banned under the F&O segment include companies where derivative contracts cross 95% of the market-wide position limit.