Trade setup for January 27: Top 15 things to know before the opening bell

Nifty Trade setup for January 27

• Short-term moving averages trended down
• Momentum indicators showing sell signal, elevated VIX signalling caution
• Convincing fall below 24,900 can open door for 24,600–24,500
• Immediate resistance is placed at 25,160, followed by 25,350–25,450

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The Nifty 50 could not see follow-up buying and shed nearly 1 percent on January 23, falling decisively below the 200 DEMA, accompanied by above-average volumes. Short-term moving averages trended down, with momentum indicators showing a sell signal and an elevated VIX signalling caution. Experts expect the benchmark index to consolidate, with support at the previous week’s low of 24,900. A convincing fall below this level can open the door for 24,600–24,500, which would act as a crucial support zone. On the higher side, the immediate resistance is placed at 25,160, followed by 25,350–25,450, which remains a key hurdle, experts said.

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

1) Key Levels For The Nifty 50 (25,049)

Resistance based on pivot points: 25,264, 25,340, and 25,463

Support based on pivot points: 25,017, 24,941, and 24,818

Special Formation:The Nifty 50 formed a long bearish candle on the daily charts after neutral candlestick pattern formation in the previous couple of sessions, indicating weakness. With Friday’s correction, the index traded below all key moving averages, with short-term moving averages trending downward. The momentum indicators maintained a sell signal, with the RSI at 29.12 (oversold zone), while the MACD remained below the signal line as well as the zero line, with weakness in the histogram. All this indicates continued bearish momentum and limited upside in the near term.

2) Key Levels For The Bank Nifty (58,473)

Resistance based on pivot points: 59,142, 59,391, and 59,794

Support based on pivot points: 58,337, 58,088, and 57,686

Resistance based on Fibonacci retracement: 59,366, 59,620

Support based on Fibonacci retracement: 57,800, 56,988

Special Formation: The Bank Nifty also reported a long red candle on the daily timeframe following Doji candlestick pattern formation, signalling control of bears. The index decisively broke the 58,800 zone, which had acted as a support multiple times in the past, and closed below the lower Bollinger Bands. The index fell below the 50-day EMA, with short-term moving averages trending downward. The momentum indicators also weakened, with the RSI falling to 38.98 and the MACD declining below the zero line with further weakness in the histogram. All this indicates sustained selling pressure and a bearish bias in the short term.

3) Nifty Call Options Data

According to the monthly options data, the maximum Call open interest was seen at the 25,500 strike (with 1.68 crore contracts). This level can act as a key resistance level for the Nifty in the short term. It was followed by the 25,300 strike (1.32 crore contracts) and 25,400 strike (1.13 crore contracts).

Maximum Call writing was observed at the 25,300 strike, which saw an addition of 73.99 lakh contracts, followed by the 25,200 and 25,500 strikes, which added 61.72 lakh and 54.08 lakh contracts, respectively. The maximum Call unwinding was seen at the 24,650 strike, which shed 14,300 contracts, followed by the 24,600 and 24,550 strikes, which shed 11,505 and 8,840 contracts, respectively.

4) Nifty Put Options Data

On the Put side, the 24,500 strike holds the maximum Put open interest (with 88.96 lakh contracts), which can act as a key support level for the Nifty in the short term. It was followed by the 25,000 strike (76.8 lakh contracts) and the 24,700 strike (68.06 lakh contracts).

The maximum Put writing was placed at the 24,700 strike, which saw an addition of 21.93 lakh contracts, followed by the 24,600 and 25,050 strikes, which added 15.83 lakh and 8.22 lakh contracts, respectively. The maximum Put unwinding was seen at the 25,200 strike, which shed 41.08 lakh contracts, followed by the 25,000 and 25,300 strikes, which shed 23.75 lakh and 18.43 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 19.01 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 (13.98 lakh contracts) and the 59,000 strike (11.29 lakh contracts).

Maximum Call writing was observed at the 59,200 strike (with the addition of 4.63 lakh contracts), followed by the 59,000 strike (4.25 lakh contracts) and 59,500 strike (3.51 lakh contracts). The maximum Call unwinding was seen at the 60,000 strike, which shed 1.4 lakh contracts, followed by the 57,000 and 59,700 strikes which shed 10,830 and 5,520 contracts, respectively.

6) Bank Nifty Put Options Data

On the Put side, the 58,000 strike holds the maximum Put open interest (with 8.71 lakh contracts), which can act as a key support level for the index. This was followed by the 58,500 strike (8.03 lakh contracts) and the 57,000 strike (6.06 lakh contracts).

The maximum Put writing was placed at the 57,500 strike (which added 1.83 lakh contracts), followed by the 57,800 strike (1.59 lakh contracts) and the 58,400 strike (1.12 lakh contracts). The maximum Put unwinding was seen at the 59,000 strike, which shed 4.36 lakh contracts, followed by the 59,500 and 58,900 strikes, which shed 2.32 lakh and 1.5 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, fell to 0.7 on January 23, compared to 0.87 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, rallied 6.31 percent to 14.19, the highest closing level since June 19, 2025. Short- and medium-term moving averages trended upward, signalling further uncertainty and caution for bulls.

10) Long Build-up (9 Stocks)

A long build-up was seen in 9 stocks. An increase in open interest (OI) and price indicates a build-up of long positions.

11) Long Unwinding (112 Stocks)

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

12) Short Build-up (72 Stocks)

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

13) Short-Covering (20 Stocks)

20 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: Sammaan Capital

Stocks removed from F&O ban: Bandhan Bank