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

Market Uptrend

The buying interest across key sectors helped the benchmark indices maintain a record-high streak, as the Nifty 50 hit 26,250 for the first time on September 26, during the monthly F&O expiry session, rising by 212 points. It sustained the higher highs formation for the seventh consecutive session, with volatility dropping to a two-month low. As a result, the next target for the index to watch would be 26,300, followed by 26,500, as long as it holds 26,000 as support. However, intermittent consolidation cannot be ruled out, experts said. Below are 15 data points we've gathered to help you identify profitable trades:

1) Key Levels For The Nifty 50

Resistance based on pivot points: 26,252, 26,311, and 26,408

Support based on pivot points: 26,059, 25,999, and 25,903

Special Formation: The Nifty 50 recorded a bullish candlestick pattern on the daily timeframe, with above-average volumes and an expansion of Bollinger Bands. The momentum indicator, RSI (Relative Strength Index at 78.25), maintained a positive bias but approached the overbought level, indicating a need for caution.

2) Key Levels For The Bank Nifty

Resistance based on pivot points: 54,459, 54,567, and 54,741

Support based on pivot points: 54,110, 54,002, and 53,828

Resistance based on Fibonacci retracement: 54,898, 55,653

Support based on Fibonacci retracement: 53,327, 52,631

Special Formation: The Bank Nifty also formed a bullish candlestick pattern on the daily charts, with average volumes and a higher high-higher low formation. It rose by 274 points to close at a new high of 54,375. On the weekly scale, it also displayed a bullish candle formation with a continuation of higher tops and higher bottoms for another week, accompanied by positive bias in momentum indicators such as the RSI and MACD.

3) Nifty Call Options Data

According to the monthly options data, the maximum open interest was seen at the 26,500 strike, (with 96.95 lakh contracts). This level can act as a key resistance level for the Nifty in the short term. It was followed by the 27,000 strike (92.26 lakh contracts) and the 26,200 strike (84.95 lakh contracts).

Maximum Call writing was observed at the 26,300 strike, which saw an addition of 30.11 lakh contracts, followed by the 26,400 and 26,500 strikes, which added 26.69 lakh and 20.66 lakh contracts, respectively. The maximum unwinding was seen at the 26,000 strike, which shed 51.05 lakh contracts, followed by the 27,000 and 25,900 strikes, which shed 32.77 lakh and 25.35 lakh contracts, respectively.

4) Nifty Put Options Data

On the Put side, the 26,200 strike holds the maximum open interest (with 1.7 crore contracts), which can act as a key support level for the Nifty. It was followed by the 26,000 strike (1.01 crore contracts) and the 25,500 strike (93.91 lakh contracts).

The maximum Put writing was observed at the 26,200 strike, which saw an addition of 1.67 crore contracts, followed by the 26,100 and 26,000 strikes, with 60.39 lakh and 35.38 lakh contracts added, respectively, while the Put unwinding was seen at the 25,300 strike, which shed 21.57 lakh contracts, followed by the 25,900, and 25,800 strikes, which shed 11.17 lakh and 10.12 lakh contracts, respectively.

5) Bank Nifty Call Options Data

According to the weekly options data, the maximum open interest was seen at the 54,000 strike, with 16.73 lakh contracts. This can act as a key level for the index in the short term. It was followed by the 55,000 strike (15.94 lakh contracts) and the 54,500 strike (15.72 lakh contracts).

Maximum Call writing was visible at the 55,000 strike (with the addition of 7.02 lakh contracts), followed by the 54,400 strike (4.78 lakh contracts) and the 54,300 strike (4.31 lakh contracts), while the maximum unwinding was seen at the 54,000 strike, which shed 1.1 lakh contracts, followed by the 53,800 and 53,900 strikes, which shed 47,040 and 41,220 contracts, respectively.

6) Bank Nifty Put Options Data

On the Put side, the 54,000 strike holds the maximum open interest (with 22.44 lakh contracts), which can act as a key support level for the index. This was followed by the 53,500 strike (12.29 lakh contracts) and the 54,100 strike (10.21 lakh contracts).

The maximum Put writing was observed at the 54,200 strike (which added 6.63 lakh contracts), followed by the 53,500 strike (5.68 lakh contracts) and the 54,300 strike (5.13 lakh contracts), while there was hardly any Put unwinding seen.

7) Funds Flow (Rs crore)

8) Put-Call Ratio

The Nifty Put-Call ratio (PCR), which indicates the mood of the market, jumped to 1.37 on September 26, from 1.33 levels 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

Volatility fell sharply, continuing a downtrend for the third consecutive session, reaching a two-month low, which favours the bulls. As long as it stays below the 14 mark, the bulls may remain in a comfortable position. The India VIX declined by 5.81 percent to 12, its lowest closing level since July 24.

10) Long Build-up (14 Stocks)

A long build-up was seen in 14 stocks. An increase in open interest (OI) and price indicates a build-up of long positions.

11) Long Unwinding (46 Stocks)

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

12) Short Build-up (5 Stocks)

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

13) Short-Covering (119 Stocks)

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

14) High Delivery Trades and High Rollovers

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.

Here are the stocks which saw the highest rollovers on expiry day.

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: Nil

Stocks removed from F&O ban: Nil