Trade setup for January 19: Top 15 things to know before the opening bell

Nifty Trade setup for January 19

• Nifty 50 may face strong hurdle at 25,900, likely to take support at 25,600
• Momentum, technical indicators remain largely sideways to bearish
• Index needs to decisively break the 25,600–25,900 range on either side for firm direction

Did our AI summary help?

The Nifty 50 closed moderately higher amid volatile and rangebound trading on January 16. It attempted twice during the week, including on Friday, to sustain above the 50-day EMA (near 25,900) but failed. Hence, this level can be considered a strong hurdle for a sharp upward journey toward and beyond 26,000. On the other side, the index has been taking healthy support at the 100-day EMA (a tad above 25,600) on a closing basis for the last five straight sessions. Below this, the crucial support is placed at 25,450. Further, the momentum and technical indicators remained largely sideways to bearish. Hence, until the index decisively breaks the 25,600–25,900 range on either side, consolidation and caution may continue, experts said.

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

1) Key Levels For The Nifty 50 (25,694)

Resistance based on pivot points: 25,824, 25,874, and 25,954

Support based on pivot points: 25,663, 25,613, and 25,532

Special Formation: The Nifty 50 formed a Doji-like candlestick pattern on both the daily and weekly charts, indicating indecision among market participants. The index traded below short-term moving averages, which trended downward, while the 50-day and 100-day EMAs remained flat for the last five sessions. It also sustained below the rising trendline, which is now acting as resistance after previously being a support trendline. The RSI remained in a narrow range around 40 for more than a week, while the MACD stayed below the signal line. The histogram remained below the zero line, though weakness faded slightly. All this indicates continued consolidation with a cautious to bearish undertone.

2) Key Levels For The Bank Nifty (60,095)

Resistance based on pivot points: 60,224, 60,395, and 60,672

Support based on pivot points: 59,670, 59,499, and 59,222

Resistance based on Fibonacci retracement: 60,437, 60,860

Support based on Fibonacci retracement: 59,392, 59,163

Special Formation: The Bank Nifty outperformed the benchmark Nifty 50 with above-average volumes and rallied 0.86 percent after convincingly breaking out of the consolidation of the previous four sessions. The index is now comfortably trading above all key moving averages and has moved closer to the upper Bollinger Bands, forming a long green candle on the daily timeframe. The RSI at 61.43 showed a positive crossover, and the Stochastic RSI maintained a bullish crossover, while the MACD is on the verge of a positive breakout with an almost flat histogram. All this indicates strengthening bullish momentum in the Bank Nifty.

3) Nifty Call Options Data

According to the weekly options data, the 26,000 strike holds the maximum Call open interest (with 1.45 crore contracts). This level can act as a key resistance level for the Nifty in the short term. It was followed by the 25,800 strike (1.25 crore contracts) and 25,900 strike (1.1 crore contracts).

Maximum Call writing was observed at the 25,900 strike, which saw an addition of 56.74 lakh contracts, followed by the 26,100 and 25,800 strikes, which added 52.17 lakh and 38.98 lakh contracts, respectively. The maximum Call unwinding was seen at the 25,650 strike, which shed 13.35 lakh contracts, followed by the 25,600 and 25,550 strikes, which shed 98,410 and 77,740 contracts, respectively.

4) Nifty Put Options Data

On the Put side, the maximum Put open interest was observed at the 25,500 strike (with 74.35 lakh contracts), which can act as a key support level for the Nifty in the short term. It was followed by the 25,700 strike (68.69 lakh contracts) and the 25,600 strike (62.19 lakh contracts).

The maximum Put writing was placed at the 25,500 strike, which saw an addition of 26.49 lakh contracts, followed by the 25,700 and 25,800 strikes, which added 24.9 lakh and 20.8 lakh contracts, respectively. The maximum Put unwinding was seen at the 26,000 strike, which shed 1.2 lakh contracts, followed by the 26,100 and 26,400 strikes, which shed 1.06 lakh and 18,980 contracts, respectively.

5) Bank Nifty Call Options Data

According to the monthly options data, the 60,000 strike holds the maximum Call open interest, with 15.34 lakh contracts. This can act as a key level for the index in the short term. It was followed by the 59,500 strike (14.84 lakh contracts) and the 61,000 strike (8.43 lakh contracts).

Maximum Call writing was observed at the 60,200 strike (with the addition of 96,930 contracts), followed by the 60,100 strike (85,590 contracts) and 61,500 strike (75,180 contracts). The maximum Call unwinding was seen at the 59,700 strike, which shed 1.08 lakh contracts, followed by the 59,500 and 59,800 strikes which shed 98,910 and 96,450 contracts, respectively.

6) Bank Nifty Put Options Data

On the Put side, the maximum Put open interest was seen at the 59,500 strike (with 20.29 lakh contracts), which can act as a key support level for the index. This was followed by the 60,000 strike (13.22 lakh contracts) and the 59,000 strike (10.89 lakh contracts).

The maximum Put writing was placed at the 60,000 strike (which added 5.11 lakh contracts), followed by the 60,100 strike (2.14 lakh contracts) and the 60,200 strike (1.44 lakh contracts). The maximum Put unwinding was seen at the 59,200 strike, which shed 17,550 contracts, followed by the 59,400 and 60,600 strikes, which shed 14,610 and 12,210 contracts, respectively.

7) Funds Flow (Rs crore)

8) Put-Call Ratio

The Nifty Put-Call ratio (PCR), which indicates the mood of the market, dropped to 0.76 on January 16, compared to 0.81 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, also known as the fear index, remained elevated but moved within a range of 10.5–12 levels for the third straight session. It sustained above all key moving averages (except the 200-day EMA), signaling caution for bulls. Experts advised staying alert in case the VIX spikes above the 12 zone, which could put bulls at major risk.

10) Long Build-up (55 Stocks)

A long build-up was seen in 55 stocks. An increase in open interest (OI) and price indicates a build-up of long positions.

11) Long Unwinding (28 Stocks)

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

12) Short Build-up (90 Stocks)

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

13) Short-Covering (40 Stocks)

40 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