Trade setup for January 22: Top 15 things to know before the opening bell

Nifty Trade setup for January 22

• Nifty closes tad below the 200 DEMA (25,160)
• Doji formation after severe fall increases possibility of trend reversal
• Overall trend remains in favour of bears, VIX reaches a seven-month high
• Decisive and sustainable fall below 25,900 could drive Nifty down toward 24,600–24,400 levels

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The Nifty 50 turned volatile after a severe correction seen in the previous session and closed a tad below the 200 DEMA (25,160), posting a one-third percent loss on January 21. The formation of indecisive pattern increases the possibility of a trend reversal after the recent fall, though confirmation is needed in the following session. In fact, the overall trend remains in favour of bears, and the VIX reached a seven-month high. A decisive and sustainable fall below 25,900 could drive the Nifty down toward the 24,600–24,400 levels; however, above 25,300, the index may move upward toward the 25,450–25,600 levels, experts said.

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

1) Key Levels For The Nifty 50 (25,158)

Resistance based on pivot points: 25,272, 25,362, and 25,507

Support based on pivot points: 24,980, 24,891, and 24,745

Special Formation: The Nifty 50 formed a small green candle with long upper and lower shadows, resembling a doji-like candlestick pattern (not a classical one) on the daily timeframe, which indicated indecision among market participants. With the fall below the 200-day EMA, the index is now trading below all key moving averages, with the 10-day EMA breaking below the 100-day EMA and the 20-day EMA slipping below the 50-day EMA. Further, the index has shifted below the lower Bollinger Band. The RSI remained in the oversold zone at 27.89, while the MACD stayed below the signal and zero lines, with further weakness in the histogram. All this indicates continued weakness and heightened volatility.

2) Key Levels For The Bank Nifty (58,800)

Resistance based on pivot points: 59,289, 59,564, and 60,011

Support based on pivot points: 58,396, 58,120, and 57,673

Resistance based on Fibonacci retracement: 59,356, 59,612

Support based on Fibonacci retracement: 57,811, 57,000

Special Formation:The Bank Nifty reported a bearish candle with long upper and lower shadows on the daily charts, indicating further weakness amid volatility. With Wednesday’s 1 percent fall, the index slipped below the 50-day EMA, though it continues to sustain above long-term moving averages (the 100-day and 200-day EMAs). The index managed to hold above the lower Bollinger Band as well as the 58,800 support level on a closing basis. The RSI dropped further to 40.77, while the MACD maintained a bearish crossover with a further decline in the histogram. All this indicates cautious sentiment with downside risk persisting.

3) Nifty Call Options Data

According to the monthly options data, the maximum Call open interest was seen at the 25,500 strike (with 1.13 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 (75.91 lakh contracts) and 25,900 strike (69 lakh contracts).

Maximum Call writing was observed at the 25,200 strike, which saw an addition of 42.06 lakh contracts, followed by the 25,100 and 25,300 strikes, which added 30.69 lakh and 27.03 lakh contracts, respectively. There was hardly any Call unwinding seen in the 24,400-26,000 strike band.

4) Nifty Put Options Data

On the Put side, the 25,000 strike holds the maximum Put open interest (with 88.66 lakh contracts), which can act as a key support level for the Nifty in the short term. It was followed by the 24,500 strike (67.07 lakh contracts) and the 25,200 strike (55.93 lakh contracts).

The maximum Put writing was placed at the 24,700 strike, which saw an addition of 25.9 lakh contracts, followed by the 25,100 and 24,900 strikes, which added 24.37 lakh and 18.14 lakh contracts, respectively. The maximum Put unwinding was seen at the 25,500 strike, which shed 11.88 lakh contracts, followed by the 25,600 and 25,800 strikes, which shed 11.23 lakh and 7.33 lakh contracts, respectively.

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 19.03 lakh contracts. This can act as a key resistance level for the index in the short term. It was followed by the 59,500 strike (10.98 lakh contracts) and the 60,500 strike (7.51 lakh contracts).

Maximum Call writing was observed at the 59,000 strike (with the addition of 3.95 lakh contracts), followed by the 59,500 strike (2.41 lakh contracts) and 59,400 strike (2.13 lakh contracts). The maximum Call unwinding was seen at the 60,100 strike, which shed 98,790 contracts, followed by the 60,200 and 59,900 strikes which shed 61,710 and 29,010 contracts, respectively.

6) Bank Nifty Put Options Data

On the Put side, the 58,500 strike holds the maximum Put open interest (with 8.7 lakh contracts), which can act as a key support level for the index. This was followed by the 58,000 strike (8.08 lakh contracts) and the 59,500 strike (7.3 lakh contracts).

The maximum Put writing was placed at the 58,500 strike (which added 1.86 lakh contracts), followed by the 58,200 strike (1.28 lakh contracts) and the 58,300 strike (85,800 contracts). The maximum Put unwinding was seen at the 59,500 strike, which shed 3.4 lakh contracts, followed by the 59,000 and 60,000 strikes, which shed 3.22 lakh and 1.42 lakh contracts, respectively.

7) Funds Flow (Rs crore)

8) Put-Call Ratio

The Nifty Put-Call ratio (PCR), which indicates the mood of the market, rose to 0.78 on January 21, compared to 0.72 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

The India VIX, which measures expected market volatility, jumped 8.25 percent to 13.78, marking the highest closing level since June 23, 2025. Short- and medium-term moving averages are trending upward, signalling rising risk for bulls. Generally, the VIX moves upward ahead of the Union Budget.

10) Long Build-up (26 Stocks)

A long build-up was seen in 26 stocks. An increase in open interest (OI) and price indicates a build-up of long positions.

11) Long Unwinding (72 Stocks)

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

12) Short Build-up (77 Stocks)

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

13) Short-Covering (37 Stocks)

37 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: Bandhan Bank

Stocks retained in F&O ban: Sammaan Capital

Stocks removed from F&O ban: SAIL