Trade setup for February 11: Top 15 things to know before the opening bell

Nifty Trade setup for February 11

• All key moving averages trended upward, Falling VIX favoured bulls
• Nifty 50 faces resistance at 26,000 level as above it 26,200–26,400 could come into focus
• Below 26,000, consolidation may continue, with support placed at 25,800

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The market scaled further, with the Nifty 50 rising by one-third of a percent on February 10, extending its northward journey for the third straight session as momentum indicators aligned with the rally. All key moving averages trended upward, and the index traded near the upper Bollinger Bands. Meanwhile, a falling VIX favoured bulls, signalling a healthy trend. On Tuesday, the Nifty 50 faced resistance at the psychological 26,000 level. If this zone is convincingly surpassed and sustained, levels of 26,200–26,400 could come into focus. However, until then, experts believe consolidation may continue, with support placed at 25,800.

Here are 15 data points we have collated to help you spot profitable trades:

1) Key Levels For The Nifty 50 (25,935)

Resistance based on pivot points: 25,977, 26,005, and 26,051

Support based on pivot points: 25,886, 25,858, and 25,813

Special Formation: The Nifty formed a Doji-like candlestick pattern on the daily charts, indicating indecision between bulls and bears. The index continued to form higher highs and higher lows for another session. The index convincingly sustained above all key moving averages, which themselves continued to trend upward. The RSI rose to 57.51, while the MACD moved closer to the zero line with a positive crossover, and the histogram continued to trend higher. All these signals indicate strengthening momentum despite near-term consolidation.

2) Key Levels For The Bank Nifty (60,626)

Resistance based on pivot points: 60,753, 60,816, and 60,918

Support based on pivot points: 60,550, 60,487, and 60,386

Resistance based on Fibonacci retracement: 61,160, 62,075

Support based on Fibonacci retracement: 60,000, 59,452

Special Formation: The Bank Nifty traded within the previous day’s range on Tuesday and formed a bearish candle on the daily timeframe, indicating consolidation after the prior session’s gap-up move. The banking index declined 43 points but continued to trade near the upper Bollinger Bands. All key moving averages remained upward sloping, reflecting a positive trend in momentum indicators. The RSI hovered near 60 at 59.74, while the MACD maintained a bullish crossover with a further uptick in the histogram. These indicators suggest that the broader trend remains positive despite short-term consolidation.

3) Nifty Call Options Data

According to the weekly options data, the maximum Call open interest was seen at the 26,000 strike (with 58.81 lakh contracts). This level can act as a key resistance level for the Nifty in the short term. It was followed by the 26,500 strike (40.01 lakh contracts) and 26,200 strike (35.11 lakh contracts).

Maximum Call writing was observed at the 26,000 strike, which saw an addition of 28.85 lakh contracts, followed by the 26,100 and 26,500 strikes, which added 23.1 lakh and 22.93 lakh contracts, respectively. The maximum Call unwinding was seen at the 25,850 strike which shed 62,205 contracts, followed by the 25,800 and 25,750 strikes, which shed 35,425 and 5,005 contracts, respectively.

4) Nifty Put Options Data

On the Put side, the 25,500 strike holds the maximum Put open interest (with 34.7 lakh contracts), which can act as a key support level for the Nifty in the short term. It was followed by the 25,900 strike (34.32 lakh contracts) and the 26,000 strike (32.78 lakh contracts).

The maximum Put writing was placed at the 25,900 strike, which saw an addition of 24.37 lakh contracts, followed by the 26,000 and 25,950 strikes, which added 23.58 lakh and 17.62 lakh contracts, respectively. There was hardly any Put unwinding seen in the 25,200-26,700 strike band.

5) Bank Nifty Call Options Data

According to the monthly options data, the maximum Call open interest was seen at the 60,000 strike, with 14.96 lakh contracts. This can act as a key level for the index in the short term. It was followed by the 61,000 strike (8 lakh contracts) and the 60,500 strike (6.94 lakh contracts).

Maximum Call writing was observed at the 60,700 strike (with the addition of 1.14 lakh contracts), followed by the 61,000 strike (1.05 lakh contracts) and 60,800 strike (1.02 lakh contracts). The maximum Call unwinding was seen at the 60,000 strike, which shed 32,910 contracts, followed by the 61,700 and 59,000 strikes which shed 22,860 and 21,810 contracts, respectively.

6) Bank Nifty Put Options Data

On the Put side, the 60,000 strike holds the maximum Put open interest (with 20.2 lakh contracts), which can act as a key support level for the index. This was followed by the 59,000 strike (8.39 lakh contracts) and the 60,500 strike (6.33 lakh contracts).

The maximum Put writing was placed at the 60,500 strike (which added 1.03 lakh contracts), followed by the 60,700 strike (80,040 contracts) and the 60,600 strike (74,730 contracts). The maximum Put unwinding was seen at the 60,100 strike which shed 17,220 contracts.

7) Funds Flow (Rs crore)

8) Put-Call Ratio

The Nifty Put-Call ratio (PCR), which indicates the mood of the market, rose to 1.17 on February 10, compared to 1.11 in the 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.

9) India VIX

India VIX, which measures expected market volatility, fell 4.31 percent to 11.67—the lowest closing level since January 16—and dropped below all key moving averages, further supporting the prevailing bullish sentiment.

10) Long Build-up (65 Stocks)

A long build-up was seen in 65 stocks. An increase in open interest (OI) and price indicates a build-up of long positions.

11) Long Unwinding (39 Stocks)

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

12) Short Build-up (59 Stocks)

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

13) Short-Covering (48 Stocks)

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

14) High Delivery Trades

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.

15) Stocks Under F&O Ban

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

Stocks added to F&O ban: Nil

Stocks retained in F&O ban: SAIL, Sammaan Capital

Stocks removed from F&O ban: Nil