Trade setup for October 17: Top 15 things to know before the opening bells

Nifty Trade setup for October 17

Bulls maintained their strong hold over the market for another session, lifting the Nifty 50 index 1 percent higher on October 16. The index achieved its highest closing level since June this year, supported by bullish technical and momentum indicators. Experts believe this may reflect a pre-Diwali celebration mood on the Street, which is expected to help the index reach this year's high of 25,669 soon, followed by 26,000, a crucial resistance level before the record high hurdle. However, the 25,400–25,300 range can act as a support zone.

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

1) Key Levels For The Nifty 50 (25,585)

Resistance based on pivot points: 25,624, 25,683, and 25,778

Support based on pivot points: 25,434, 25,376, and 25,281

Special Formation: The Nifty 50 formed a long bullish candle on the daily charts after a gap-up opening, moving straight above the downward-sloping resistance trendline (which can now act as a support trendline), signalling a positive trend. Key moving averages continued to trend upward, while the RSI rose to 66.82, and the MACD maintained its upward trajectory with a bullish crossover and a strengthening histogram. All these factors indicate continued bullish momentum.

2) Key Levels For The Bank Nifty (57,423)

Resistance based on pivot points: 57,517, 57,643, and 57,845

Support based on pivot points: 57,111, 56,986, and 56,783

Resistance based on Fibonacci retracement: 57,628, 58,735

Support based on Fibonacci retracement: 56,575, 55,998

Special Formation: The Bank Nifty also formed a bullish candle with minor upper and lower shadows on the daily charts, indicating a bullish bias despite some volatility. The index continued its higher high–higher low structure, and approached very close to its record high of 57,628 after Thursday's gap-up opening. Key moving averages remained upward sloping, with strength in the RSI (72.64) and a bullish MACD setup. All of this indicates strong upward momentum in the index.

3) Nifty Call Options Data

According to the weekly options data, the 26,000 strike holds the maximum Call open interest (with 1.12 crore contracts). This level can act as a key resistance for the Nifty in the short term. It was followed by the 25,800 strike (89.98 lakh contracts), and the 25,700 strike (72.98 lakh contracts).

Maximum Call writing was observed at the 25,800 strike, which saw an addition of 37.73 lakh contracts, followed by the 25,850 and 26,000 strikes, which added 24.74 lakh and 24.54 lakh contracts, respectively. The maximum Call unwinding was seen at the 25,500 strike, which shed 39.12 lakh contracts, followed by the 25,400 and 25,350 strikes, which shed 26.21 lakh and 21.78 lakh contracts, respectively.

4) Nifty Put Options Data

On the Put side, the maximum Put open interest was seen at the 25,300 strike (with 1.09 crore contracts), which can act as a key support level for the Nifty. It was followed by the 25,500 strike (1.01 crore contracts) and the 25,400 strike (98.48 lakh contracts).

The maximum Put writing was placed at the 25,500 strike, which saw an addition of 84.62 lakh contracts, followed by the 25,400 and 25,600 strikes, which added 56.49 lakh and 54.56 lakh contracts, respectively. The maximum Put unwinding was seen at the 25,050 strike, which shed 16.19 lakh contracts, followed by the 24,950 and 25,200 strikes, which shed 8.14 lakh and 2.45 lakh contracts, respectively.

5) Bank Nifty Call Options Data

According to the monthly options data, the maximum Call open interest was seen at the 57,000 strike, with 20.74 lakh contracts. This can act as a key level for the index in the short term. It was followed by the 58,000 strike (11.93 lakh contracts) and the 59,000 strike (8.98 lakh contracts).

Maximum Call writing was observed at the 58,100 strike (with the addition of 83,860 contracts), followed by the 57,300 (74,340 contracts) and 57,400 strike (56,420 contracts). The maximum Call unwinding was seen at the 57,000 strike, which shed 2.7 lakh contracts, followed by the 56,700 and 56,500 strikes, which shed 2.1 lakh and 1.88 lakh contracts, respectively.

6) Bank Nifty Put Options Data

On the Put side, the 57,000 strike holds the maximum Put open interest (with 21.33 lakh contracts), which can act as a key support level for the index. This was followed by the 56,000 strike (13.18 lakh contracts) and the 55,500 strike (9.58 lakh contracts).

The maximum Put writing was placed at the 57,600 strike (which added 3.98 lakh contracts), followed by the 57,000 strike (3.18 lakh contracts) and the 57,200 strike (1.92 lakh contracts). The maximum Put unwinding was seen at the 56,300 strike which shed 42,420 contracts, followed by the 56,800 and 56,200 strikes, which shed 42,105 and 35,210 contracts, respectively.

7) Funds Flow (Rs crore)

8) Put-Call Ratio

The Nifty Put-Call ratio (PCR), which indicates the mood of the market, jumped to 1.38 on October 16 (the highest level since September 23, 2024), compared to 1.21 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, climbed 3.18 percent to 10.87 after a sharp decline in the previous session. However, it remains well below the current week’s high and the medium-term moving average, thus still signalling comfort for the bulls.

10) Long Build-up (68 Stocks)

A long build-up was seen in 68 stocks. An increase in open interest (OI) and price indicates a build-up of long positions.

11) Long Unwinding (24 Stocks)

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

12) Short Build-up (49 Stocks)

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

13) Short-Covering (72 Stocks)

72 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: Nil

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