Trade Setup for July 8: Top 15 things to know before the opening bell

Nifty Trade Setup for July 8, 2026

The Nifty 50 turned completely into the red in late trade and fell 0.13 percent due to profit booking on July 7 after a four-day rally. This consolidation, accompanied by range-bound trading, is expected to continue for a couple of sessions as traders await India Inc.'s quarterly earnings, although the broader market structure remains healthy. Going ahead, the 24,300-24,200 zone is expected to serve as the immediate support area, followed by 24,000 as a crucial support level. On the upside, the 24,500-24,600 zone is likely to remain the key hurdle for a sharper upmove. Hence, as long as the index trades below 24,500, consolidation may continue, according to experts.

1) Key Levels For The Nifty 50 (24,399)

Resistance based on pivot points: 24,496, 24,539, and 24,608

Support based on pivot points: 24,357, 24,314, and 24,244

Special Formation: The Nifty 50 formed a bearish candlestick with upper and lower shadows on the daily timeframe, indicating indecisiveness between bulls and bears. The index slipped below the 200-day EMA after closing above it in the previous session but remained above all other key moving averages. The 10-day EMA crossed above the 100-day EMA after surpassing the 20- and 50-day EMAs in June. The momentum indicators remain on a bullish trajectory, with the RSI at 63.02, while the MACD histogram's green bar expanded for the fourth consecutive session, with the MACD staying above both the signal and zero lines. All this indicates that the broader bullish trend remains intact despite the ongoing consolidation.

2) Key Levels For The Bank Nifty (58,201)

Resistance based on pivot points: 58,477, 58,588, and 58,768

Support based on pivot points: 58,117, 58,006, and 57,826

Resistance based on Fibonacci retracement: 59,195, 61,678

Support based on Fibonacci retracement: 57,332, 56,465

Special Formation: The Bank Nifty declined 91 points amid profit booking and formed a red candlestick on the daily timeframe. However, the bulls continue to maintain firm control, with the index trading well above all key moving averages, all of which are trending upward. The 50-day EMA crossed above the 200-day EMA and is on the verge of moving above the 100-day EMA. The RSI remained above the 60 mark at 63.45, while the MACD witnessed a bearish crossover for the first time since May 22, with the histogram turning red. All this indicates that although short-term momentum has weakened slightly, the broader bullish structure remains intact.

According to the weekly options data, the 24,500 strike holds the maximum Call open interest (with 81.6 lakh contracts). This level can act as a key resistance level for the Nifty in the short term. It was followed by the 25,000 strike (55.05 lakh contracts) and 24,400 strike (53.12 lakh contracts).

Maximum Call writing was observed at the 24,500 strike, which saw an addition of 49.25 lakh contracts, followed by the 24,400 and 24,600 strikes, which added 33.25 lakh and 24.04 lakh contracts, respectively. There was hardly any Call unwinding seen in the 23,700-25,100 strike band.

On the Put side, the maximum Put open interest was seen at the 24,500 strike (with 46.32 lakh contracts), which can act as a key level for the Nifty in the short term. It was followed by the 24,000 strike (46.19 lakh contracts) and the 23,800 strike (35.51 lakh contracts).

The maximum Put writing was placed at the 24,500 strike, which saw an addition of 30.63 lakh contracts, followed by the 24,000 and 23,800 strikes, which added 19.85 lakh and 13.46 lakh contracts, respectively. There was hardly any Put unwinding seen in the 23,700-25,100 strike band.

According to the monthly options data, the 59,000 strike holds the maximum Call open interest, with 20.17 lakh contracts. This can act as a key resistance level for the index in the short term. It was followed by the 58,000 strike (11.52 lakh contracts) and the 58,500 strike (8.16 lakh contracts).

Maximum Call writing was observed at the 59,000 strike (with the addition of 3.69 lakh contracts), followed by the 58,500 strike (1.09 lakh contracts) and 58,400 strike (50,220 contracts). The maximum Call unwinding was seen at the 58,000 strike, which shed 69,180 contracts, followed by the 57,000 and 59,500 strikes, which shed 26,220 and 20,700 contracts, respectively.

On the Put side, the maximum Put open interest was seen at the 59,000 strike (with 13.13 lakh contracts), which can act as a key level for the index in the short term. This was followed by the 58,000 strike (12.06 lakh contracts) and the 57,000 strike (6.65 lakh contracts).

The maximum Put writing was placed at the 59,000 strike (which added 3.57 lakh contracts), followed by the 57,500 strike (91,290 contracts) and 58,500 strike (81,210 contracts). The maximum Put unwinding was seen at the 58,000 strike, which shed 50,880 contracts, followed by the 57,800 and 57,900 strikes, which shed 15,060 and 8,190 contracts, respectively.

The Nifty Put-Call ratio (PCR), which indicates the mood of the market, fell to 1.08 on July 7, from 1.38 compared to previous session.

The increasing PCR, or being higher than 0.7 or surpassing 1, means traders are selling more Put options than Call options, which generally indicates the firming up of a bullish sentiment in the market. If the ratio falls below 0.7 or moves towards 0.5, then it indicates selling in Calls is higher than selling in Puts, reflecting a bearish mood in the market.

The fear index, India VIX, dropped 1.44 percent to 11.65, its lowest closing level since February 11, and continued to trade well below all key moving averages. This suggests increasing comfort among bulls. Sustaining around the 10-12 levels is necessary to keep the market stable.

A long build-up was seen in 21 stocks. An increase in open interest (OI) and price indicates a build-up of long positions.

65 stocks saw a decline in open interest (OI) along with a fall in price, indicating long unwinding.

73 stocks saw an increase in OI along with a fall in price, indicating a build-up of short positions.

55 stocks saw short-covering, meaning a decrease in OI, along with a price increase.

Here are the stocks that saw a high share of delivery trades. A high share of delivery reflects investing (as opposed to trading) interest in a stock.

Securities banned under the F&O segment include companies where derivative contracts cross 95 percent of the market-wide position limit.