Trade setup for March 10: Top 15 things to know before the opening bell

Nifty Trade Setup

The Nifty 50 finished rangebound trading flat with a positive bias, continuing its uptrend for the third consecutive session on March 7. The index sustained above the bearish gap of February 28 for another session with above-average volumes, indicating positivity, though there was some profit-taking at higher levels. Hence, according to experts, as long as the index holds 22,500 in the upcoming sessions, an upward journey toward the 22,750-22,800 zone is possible. However, if it falls below 22,500, the support is placed at 22,300.

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

1) Key Levels For The Nifty 50 (22,553)

Resistance based on pivot points: 22,615, 22,655, and 22,719

Support based on pivot points: 22,486, 22,446, and 22,381

Special Formation: The Nifty 50 formed a small bullish candle with minor lower and reasonable upper shadows on the daily charts, indicating some consolidation while holding above the 5 and 10-day EMAs (Exponential Moving Averages). The momentum indicator, RSI (Relative Strength Index), at 41.7, maintained a positive crossover but remained in the lower band.

2) Key Levels For The Bank Nifty (48,498)

Resistance based on pivot points: 48,656, 48,738, and 48,872

Support based on pivot points: 48,388, 48,306, and 48,172

Resistance based on Fibonacci retracement: 49,398, 50,371

Support based on Fibonacci retracement: 47,881, 46,078

Special Formation: The Bank Nifty also reported a small-bodied bullish candle with a long upper and minor lower shadow on the daily timeframe, resembling a Doji-like candlestick pattern (though not a classical one), indicating indecision between bulls and bears. The index negated the higher highs formation of the previous couple of sessions and closed below the 5-day EMA with a 130-point loss on Friday.

3) Nifty Call Options Data

According to the weekly options data, the 23,100 strike holds the maximum Call open interest (with 84.92 lakh contracts). This level can act as a key resistance for the Nifty in the short term. It was followed by the 22,800 strike (83.85 lakh contracts) and the 23,000 strike (82.67 lakh contracts).

Maximum Call writing was observed at the 23,600 strike, which saw an addition of 54.29 lakh contracts, followed by the 22,800 and 23,100 strikes, which added 49.42 lakh and 46.2 lakh contracts, respectively. The maximum Call unwinding was seen at the 22,400 strike, which shed 2.85 lakh contracts, followed by the 22,300 and 22,200 strikes, which shed 2.01 lakh and 1.23 lakh contracts, respectively.

4) Nifty Put Options Data

On the Put side, the maximum Put open interest was seen at the 22,300 strike (with 83.65 lakh contracts), which can act as a key support level for the Nifty. It was followed by the 22,000 strike (69.27 lakh contracts) and the 22,500 strike (66.71 lakh contracts).

The maximum Put writing was placed at the 22,300 strike, which saw an addition of 48.06 lakh contracts, followed by the 22,000 and 22,600 strikes, which added 23.09 lakh and 19.07 lakh contracts, respectively. There was hardly any Put unwinding seen in the 21,600-23,650 strike band.

5) Bank Nifty Call Options Data

According to the monthly options data, the maximum Call open interest was seen at the 49,000 strike, with 15.47 lakh contracts. This can act as a key resistance level for the index in the short term. It was followed by the 50,000 strike (14.75 lakh contracts) and the 48,500 strike (9.4 lakh contracts).

Maximum Call writing was visible at the 49,000 strike (with the addition of 2.25 lakh contracts), followed by the 48,500 strike (1.14 lakh contracts) and the 48,600 strike (97,950 contracts). The maximum Call unwinding was seen at the 50,200 strike, which shed 46,020 contracts, followed by the 49,900 and 48,300 strikes, which shed 17,760 and 7,020 contracts, respectively.

6) Bank Nifty Put Options Data

On the Put side, the 48,000 strike holds the maximum Put open interest (with 13.05 lakh contracts), which can act as a key support level for the index. This was followed by the 47,000 strike (10.56 lakh contracts) and the 49,000 strike (8.38 lakh contracts).

The maximum Put writing was observed at the 48,000 strike (which added 73,170 contracts), followed by the 47,500 strike (50,820 contracts) and the 47,900 strike (42,570 contracts). The maximum Put unwinding was seen at the 47,000 strike, which shed 96,150 contracts, followed by the 47,200 and 50,000 strikes which shed 66,690 and 45,810 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 1.08 on March 7, against 1.14 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, the fear index, remained below all key moving averages (10, 20, 50, 100, and 200-day EMAs) and fell 1.86 percent to 13.47 levels on Friday, providing further comfort for bulls.

10) Long Build-up (41 Stocks)

A long build-up was seen in 41 stocks. An increase in open interest (OI) and price indicates a build-up of long positions.

11) Long Unwinding (52 Stocks)

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

12) Short Build-up (79 Stocks)

79 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: Hindustan Copper

Stocks retained in F&O ban: Manappuram Finance

Stocks removed from F&O ban: Nil