Trade setup for October 10: Top 15 things to know before the opening bells

Nifty Trade setup for October 10

The Nifty 50 recouped its previous day's losses and rallied 136 points on October 9 by consistently defending the 25,000 mark, which is expected to act as the immediate support zone for the index. Overall, the trend remains favourable for bulls despite intermittent consolidation, supported by healthy technical and momentum indicators. Hence, if the index manages to reclaim and sustain above 25,200 — the key immediate resistance — the levels to watch out for would be 25,350–25,450, provided it continues to defend the 25,000–24,900 support zone, according to experts.

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

1) Key Levels For The Nifty 50 (25,182)

Resistance based on pivot points: 25,202, 25,243, and 25,310

Support based on pivot points: 25,068, 25,027, and 24,960

Special Formation: The Nifty 50 formed a bullish candle with minor upper and lower shadows on the daily timeframe, signalling some volatility but a bullish bias. The index also sustained well above all key moving averages and the midline of the Bollinger Bands. The RSI edged closer to the 60-mark, at 58.03, with a positive crossover. The MACD witnessed a bullish crossover, with further strength in the histogram. All these indicators point to a positive setup for the index.

2) Key Levels For The Bank Nifty (56,192)

Resistance based on pivot points: 56,276, 56,381, and 56,550

Support based on pivot points: 55,938, 55,834, and 55,665

Resistance based on Fibonacci retracement: 56,758, 57,628

Support based on Fibonacci retracement: 55,808, 55,379

Special Formation: The Bank Nifty rose 174 points and formed a bullish candle with minor upper and lower shadows on the daily charts while defending the previous day’s low, which could act as a support zone in the near term. The banking index also held well above all key moving averages. The MACD continued to maintain its bullish crossover, with the histogram holding firm. The RSI stood at 62.78, sustaining its positive crossover. These signals indicate strength in the index and a continuation of bullish momentum.

3) Nifty Call Options Data

According to the weekly options data, the maximum Call open interest was placed at the 26,000 strike (with 1.34 crore contracts). This level can act as a key resistance for the Nifty in the short term. It was followed by the 25,500 strike (1.03 crore contracts), and the 25,200 strike (98.31 lakh contracts).

Maximum Call writing was observed at the 25,400 strike, which saw an addition of 16.62 lakh contracts, followed by the 25,600 and 25,550 strikes, which added 12.34 lakh and 11.95 lakh contracts, respectively. The maximum Call unwinding was seen at the 25,100 strike, which shed 46.64 lakh contracts, followed by the 25,150 and 25,200 strikes, which shed 29.35 lakh and 19.64 lakh contracts, respectively.

4) Nifty Put Options Data

On the Put side, the 25,000 strike holds the maximum Put open interest (with 1.37 crore contracts), which can act as a key support level for the Nifty. It was followed by the 25,100 strike (1.07 crore contracts) and the 24,500 strike (80.82 lakh contracts).

The maximum Put writing was placed at the 25,100 strike, which saw an addition of 62.68 lakh contracts, followed by the 25,000 and 25,050 strikes, which added 58.93 lakh and 39.2 lakh contracts, respectively. The maximum Put unwinding was seen at the 24,850 strike, which shed 81,900 contracts, followed by the 26,000 strike, which shed 39,525 contracts.

5) Bank Nifty Call Options Data

According to the monthly options data, the 57,000 strike holds the maximum Call open interest, with 21.3 lakh contracts. This can act as a key resistance level for the index in the short term. It was followed by the 58,000 strike (12.15 lakh contracts) and the 56,000 strike (10.76 lakh contracts).

Maximum Call writing was observed at the 56,500 and 57,500 strikes (with the addition of 34,580 contracts each), followed by the 57,600 strike (30,345 contracts). The maximum Call unwinding was seen at the 56,000 strike, which shed 68,460 contracts, followed by the 55,500 and 56,300 strikes, which shed 48,125 and 26,425 contracts, respectively.

6) Bank Nifty Put Options Data

On the Put side, the maximum Put open interest was seen at the 55,000 strike (with 17.31 lakh contracts), which can act as a key support level for the index. This was followed by the 56,000 strike (12.19 lakh contracts) and the 57,000 strike (11.48 lakh contracts).

The maximum Put writing was observed at the 56,200 strike (which added 96,250 contracts), followed by the 56,500 strike (78,715 contracts) and the 54,500 strike (74,480 contracts). The maximum Put winding was seen at the 56,300 strike which shed 2,835 contracts, followed by the 55,400 and 56,700 strikes, which shed 1,505 and 1,190 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 1.06 on October 09, compared to 0.80 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, also known as the fear index, declined 1.87 percent to 10.12 and remained below its short-term moving averages, signalling a comfort zone for the bulls. It has been moving within the 9.7–11.6 range for the last five consecutive sessions, reflecting low volatility in the market.

10) Long Build-up (104 Stocks)

A long build-up was seen in 104 stocks. An increase in open interest (OI) and price indicates a build-up of long positions.

11) Long Unwinding (14 Stocks)

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

12) Short Build-up (14 Stocks)

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

13) Short-Covering (81 Stocks)

81 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: RBL Bank

Stocks removed from F&O ban: Nil

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