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

Nifty Trade setup for September 10

The Nifty 50 recorded 95-point gains on September 9, with bulls supporting the market for five consecutive sessions and pushing the index above the 50-day EMA. With this, the index is now trading above all key moving averages, along with bullish crossovers in momentum indicators, signaling a positive bias. Hence, the benchmark index is expected to march toward the psychological 25,000 mark in the upcoming sessions, despite possible intermittent consolidation — provided the 24,700 support level holds. If this level is breached, 24,500 could act as a crucial support, according to experts.

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

1) Key Levels For The Nifty 50 (24,869)

Resistance based on pivot points: 24,888, 24,906, and 24,936

Support based on pivot points: 24,828, 24,810, and 24,780

Special Formation: The Nifty 50 formed a Doji-like candlestick pattern on the daily charts, indicating indecision among bulls and bears. The index has surpassed all key moving averages and the midline of the Bollinger Bands due to the five-day rally. The RSI inched up to 53.55 with a positive crossover. The MACD sustained a bullish crossover, with the histogram gaining further strength. All these signals point toward continued bullish momentum.

2) Key Levels For The Bank Nifty (54,216)

Resistance based on pivot points: 54,319, 54,383, and 54,487

Support based on pivot points: 54,112, 54,048, and 53,944

Resistance based on Fibonacci retracement: 54,510, 55,103

Support based on Fibonacci retracement: 53,393, 52,393

Special Formation: The Bank Nifty formed a small bearish candlestick with a lower shadow within the previous day's trading range on the daily timeframe, indicating range-bound trading. The index, which has been consolidating for the fourth day in a row, continues to trade below the 20-day, 50-day, and 100-day EMAs, as well as the midline of the Bollinger Bands, signaling that bears remain in a stronger position. The RSI climbed to 39.68, sustaining a positive crossover. The MACD is on the verge of a bullish crossover, though still below the zero line. The MACD histogram remains below the zero line. All these indicators suggest ongoing weakness, but with potential for a near-term reversal if bullish signals strengthen.

3) Nifty Call Options Data

According to the weekly options data, the 25,000 strike holds the maximum Call open interest (with 55 lakh contracts). This level can act as a key resistance for the Nifty in the short term. It was followed by the 25,500 strike (49.65 lakh contracts), and the 24,900 strike (39.39 lakh contracts).

Maximum Call writing was observed at the 25,500 strike, which saw an addition of 24.48 lakh contracts, followed by the 25,000 and 24,900 strikes, which added 24.27 lakh and 22.69 lakh contracts, respectively. The maximum Call unwinding was seen at the 24,750 strike, which shed 81,900 contracts, followed by the 24,700 and 24,500 strikes, which shed 45,375 and 1,575 contracts, respectively.

4) Nifty Put Options Data

On the Put side, the maximum Put open interest was seen at the 24,800 strike (with 41.28 lakh contracts), which can act as a key support level for the Nifty. It was followed by the 24,500 strike (36.46 lakh contracts) and the 24,900 strike (33.48 lakh contracts).

The maximum Put writing was placed at the 24,900 strike, which saw an addition of 24.33 lakh contracts, followed by the 24,800 and 24,500 strikes, which added 22.79 lakh and 19.53 lakh contracts, respectively. There was hardly any Put unwinding seen in the 24,200-25,700 strike band.

5) Bank Nifty Call Options Data

According to the monthly options data, the maximum Call open interest was seen at the 55,000 strike, with 14.25 lakh contracts. This can act as a key resistance level for the index in the short term. It was followed by the 56,000 strike (13.44 lakh contracts) and the 54,000 strike (9.36 lakh contracts).

Maximum Call writing was observed at the 55,000 strike (with the addition of 1.02 lakh contracts), followed by the 54,200 strike (96,635 contracts), and the 54,500 strike (80,780 contracts). The maximum Call unwinding was seen at the 56,000 strike, which shed 24,045 contracts, followed by 55,800 and 55,200 strikes, which shed 24,395 and 5,215 contracts, respectively.

6) Bank Nifty Put Options Data

On the Put side, the 54,000 strike holds the maximum Put open interest (with 13.97 lakh contracts), which can act as a key support level for the index. This was followed by the 53,000 strike (9.01 lakh contracts) and the 55,000 strike (7.93 lakh contracts).

The maximum Put writing was observed at the 54,100 strike (which added 47,180 contracts), followed by the 53,900 strike (38,920 contracts) and the 54,200 strike (28,980 contracts). The maximum Put winding was seen at the 53,500 strike, which shed 21,560 contracts, followed by the 54,700 and 53,400 strikes, which shed 5,740 and 5,075 contracts, respectively.

7) Funds Flow (Rs crore)

8) Put-Call Ratio

The Nifty Put-Call ratio (PCR), which indicates the mood of the market, climbed to 1.08 on September 09, compared to 0.95 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, dropped 1.41 percent to 10.69 on Tuesday, continuing to sustain at lower zones. This indicates market stability and low volatility.

10) Long Build-up (56 Stocks)

A long build-up was seen in 56 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 (75 Stocks)

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

13) Short-Covering (57 Stocks)

57 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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