# Trade Setup for Thursday: Key Insights and Nifty 50 Chart Analysis

URL: https://technosports.co.in/trade-setup-thursday-nifty-50-chart-analysis/  
Published: 2024-12-19  
Updated: 2024-12-19  
Author: Reetam Bodhak

The **[Nifty 50](https://en.wikipedia.org/wiki/NIFTY_50)** index continued its downward trend for the third consecutive session on **December 18, 2024**, as bears maintained control over Dalal Street. The index fell by more than half a percent, slipping below all key moving averages and the midline of the Bollinger Bands, signaling weakness. The **Put-Call Ratio (PCR)** dropped to **0.55**, its lowest-ever level, indicating oversold conditions.

On the technical front, if the **Nifty 50** holds the **24,150 level**, a rally towards **24,500** cannot be ruled out. However, a fall below this level could push the index into the **24,000-23,900 zone**, which will act as a key support area.

Here’s a detailed breakdown of the **Nifty 50 chart**, key levels, and other market indicators to help you prepare for Thursday’s trading session.

## **Nifty 50 Chart: Key Levels to Watch**

1. **Resistance Levels**:
  - **24,341**, **24,399**, and **24,492** (based on pivot points).
  - The **25,500 strike** holds the maximum Call open interest, making it a key resistance level in the short term.
2. **Support Levels**:
  - **24,150** is a critical support level. If breached, the index could test the **24,000-23,900 zone**.
  - The **24,000 strike** holds the maximum Put open interest, reinforcing it as a strong support level.
3. **Technical Indicators**:
  - The **Relative Strength Index (RSI)** is at **45.18**, showing a negative crossover, which indicates bearish momentum.
  - The index has formed a **bearish candlestick pattern** with a lower high-lower low formation for the second consecutive session, signaling selling pressure at higher levels.

![Trade Setup for Thursday: Key Insights and Nifty 50 Chart Analysis](https://images.technosports.co.in/2024/12/nii9-2-1024x576.webp)

## **Bank Nifty Chart: Key Levels**

The **Bank Nifty** also witnessed a bearish session, dropping **1.32%** on Wednesday and **2.7%** for the week.

1. **Resistance Levels**:
  - **52,638**, **52,831**, and **53,143** (based on pivot points).
  - The **54,000 strike** holds the maximum Call open interest, making it a key resistance level.
2. **Support Levels**:
  - **52,014**, **51,821**, and **51,509** (based on pivot points).
  - The **50,000 strike** holds the maximum Put open interest, acting as a strong support level.
3. **Technical Indicators**:
  - The index has dropped below the **10-day, 20-day, and 50-day EMAs**, signaling weakness.
  - Momentum indicators like **RSI** and **MACD** have shown negative crossovers, further confirming bearish sentiment.

## **Key Market Indicators**

### **1.****Put-Call Ratio (PCR)**

The **Nifty PCR** dropped to **0.55**, its lowest-ever level, indicating oversold conditions. A PCR below **0.7** reflects a bearish mood, as traders are selling more Calls than Puts.

### **2.****India VIX**

The **India VIX**, a measure of market volatility, dropped by **0.78%** to **14.37**. While this is a slight improvement, elevated volatility levels continue to discomfort bulls.

### 3. **Options Data**

- **Call Options**:
  - Maximum Call open interest was seen at the **25,500 strike**, followed by the **25,000** and **24,300 strikes**.
  - Maximum Call writing was observed at the **24,300 strike**, indicating strong resistance at this level.
- **Put Options**:
  - Maximum Put open interest was seen at the **24,000 strike**, followed by the **24,200** and **23,500 strikes**.
  - Maximum Put writing was observed at the **24,200 strike**, reinforcing it as a key support level.

![](https://images.technosports.co.in/2024/12/fty-1-1024x461.webp)

## **Stocks to Watch**

1. **Long Build-Up**:
  - 16 stocks showed a long build-up, indicating an increase in open interest (OI) along with a price rise.
2. **Short Build-Up**:
  - 113 stocks saw a short build-up, with an increase in OI and a price decline, signaling bearish sentiment.
3. **High Delivery Trades**:
  - Stocks with a high share of delivery trades reflect strong investing interest.
4. **Stocks Under F&O Ban**:
  - Stocks like **Bandhan Bank**, **Chambal Fertilisers**, **Granules India**, and **RBL Bank** remain under the F&O ban.

## **Conclusion**

The **Nifty 50 chart** indicates bearish sentiment, with the index falling below key moving averages and forming a bearish candlestick pattern. However, oversold conditions, as reflected by the low **Put-Call Ratio (PCR)**, suggest the possibility of a short-term bounce if the index holds the **24,150 level**.

Traders should closely monitor key resistance and support levels, along with options data, to identify profitable opportunities. While volatility remains elevated, a decline in the **India VIX** could provide some relief to bulls. For now, the **24,150 level** remains critical for the Nifty 50, with a potential rally towards **24,500** if it holds.

**Read More:** [Inventurus Knowledge Solutions IPO Listing Today: Should You Buy, Sell, or Hold?](https://technosports.co.in/inventurus-knowledge-solutions-ipo-listing/)

## **FAQs**

### **1. What are the key resistance and support levels for the Nifty 50?**

  
**Resistance Levels**: 24,341, 24,399, and 24,492. The **25,500 strike** also acts as a key resistance level based on Call open interest.  
**Support Levels**: 24,150 is a critical support level. If breached, the index could test the **24,000-23,900 zone**, with the **24,000 strike** holding the maximum Put open interest.

### **2. What does the Nifty 50 chart indicate for the coming sessions?**

The **Nifty 50 chart** shows bearish momentum, with the index forming a lower high-lower low pattern and falling below key moving averages. However, if the index holds **24,150**, a rally towards **24,500** is possible. A breach of this level could lead to further downside towards **24,000-23,900**.