Nifty Trade Setup Analysis
The Nifty 50 index reached a historic closing high of 25,419 on September 17, marking a modest gain of 35 points. The positive momentum can be attributed to favorable trends in key technical indicators such as the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD). Market analysts suggest that a decisive close above 25,500 could signal a potential rally towards 25,800, further supported by a breakout from the upward sloping resistance trend line. The immediate support level for Nifty now stands at 25,200, acting as a crucial threshold for traders.
Key Support and Resistance Levels
The following pivot points will guide traders in identifying potential entry and exit points:
| Type | Levels |
|---|---|
| Support | 25,370, 25,349, 25,315 |
| Resistance | 25,438, 25,460, 25,494 |
Bank Nifty Overview
The Bank Nifty index continues to show strong performance, with key resistance and support levels outlined below:
| Type | Levels |
|---|---|
| Resistance (Pivot Points) | 52,262, 52,309, 52,385 |
| Support (Pivot Points) | 52,110, 52,063, 51,987 |
| Resistance (Fibonacci) | 52,561, 53,352 |
| Support (Fibonacci) | 51,643, 50,583 |
Options Market Trends
Nifty Options Data
The Nifty options market shows interesting trends, with a significant open interest at various strike prices:
| Call Open Interest Max | 26,000 (1.07 crore contracts) – Major Resistance |
| Put Open Interest Max | 25,000 (60.69 lakh contracts) – Major Support |
Bank Nifty Options Data
For the Bank Nifty, the following notable trends emerge:
| Call Open Interest Max | 53,000 (34.85 lakh contracts) – Significant Resistance |
| Put Open Interest Max | 52,000 (36.11 lakh contracts) – Important Support |
Market Volatility Analysis
India VIX has showcased interesting movements. After sustaining below significant moving averages, the VIX dropped below the 13 mark but has recently bounced back to close at 12.59, up by 1.04% from 12.46, indicating a recovery in bullish sentiment. A relatively low VIX suggests lower market volatility and increased investor confidence.
Delivery Trade Insights
High delivery trade volumes indicate strong investor interest, showcasing stocks that saw significant deliverable volumes on the last trading day. This trend is crucial for determining long-term interest versus trading speculation.
Long and Short Position Dynamics
Recent market activity has revealed:
- Long Build-Up: Observed in 30 stocks, indicating an increase in open interest alongside rising prices.
- Long Unwinding: Noted in 47 stocks, suggesting a decrease in open interest combined with declining prices.
- Short Build-Up: Seen in 66 stocks, reflecting a rise in open interest alongside falling prices.
- Short Covering: Detected in 41 stocks, characterized by falling open interest parallel to price rises.
Put Call Ratio (PCR) Overview
The Nifty put-call ratio rose to 1.3 on September 17, up from 1.2 in the prior session. A PCR value above 1 indicates a bullish market sentiment, while values below 0.7 generally suggest bearish sentiment.
Stocks Under F&O Ban
Stocks that have recently entered into F&O ban include:
- Newly Added: Biocon, Punjab National Bank
- Existing: Aarti Industries, Balrampur Chini Mills, Bandhan Bank, Birlasoft, GNFC, Granules India, Hindustan Copper, LIC Housing Finance, RBL Bank
- Removed: Chambal Fertilizers And Chemicals
Disclaimer: The views expressed in this article are for informational purposes only and do not constitute investment advice. Users are advised to seek guidance from certified financial professionals before making any investment decisions.
