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

Nifty Trade setup for September 16

The Nifty 50 staged a healthy rally on September 16, rising 170 points and negating the lower high–lower low structure after taking a breather in the previous session. Bulls gained further strength supported by favourable technical and momentum indicators. According to experts, a decisive close above 25,250—which was tested intraday on Tuesday—could open the door for a rally toward 25,400 and 25,550 in the upcoming sessions. However, any bouts of profit booking are expected to be used as buying opportunities, with immediate support at 25,150, followed by a key support zone in the 25,000–24,850 range.

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

1) Key Levels For The Nifty 50 (25,239)

Resistance based on pivot points: 25,263, 25,308, and 25,381

Support based on pivot points: 25,117, 25,072, and 24,999

Special Formation: The Nifty 50 formed a long bullish candle on the daily charts and negated lower high–lower low structure, signaling a shift to a positive trend. The index moved closer to the upper band of the Bollinger Bands, while the RSI climbed to 63.84. The MACD also maintained a strong bullish crossover above the zero line, with a widening histogram, all of which indicate strengthening bullish momentum.

2) Key Levels For The Bank Nifty (55,148)

Resistance based on pivot points: 55,193, 55,289, and 55,445

Support based on pivot points: 54,881, 54,785, and 54,629

Resistance based on Fibonacci retracement: 55,595, 56,075

Support based on Fibonacci retracement: 54,392, 53,393

Special Formation: The Bank Nifty also formed a strong bullish candle on the daily timeframe, backed by above-average volumes. By reclaiming the 50-day EMA, the index is now trading above all key moving averages, as well as above the midline of the Bollinger Bands. The RSI jumped to 55, suggesting growing bullish strength, while the MACD sustained its bullish crossover, with the histogram showing further expansion. All indicators signal continued upward momentum.

3) Nifty Call Options Data

According to the weekly options data, the maximum Call open interest was seen at the 26,000 strike (with 70.7 lakh contracts). This level can act as a key resistance for the Nifty in the short term. It was followed by the 25,200 strike (38.02 lakh contracts), and the 25,500 strike (32.76 lakh contracts).

Maximum Call writing was observed at the 26,000 strike, which saw an addition of 32.52 lakh contracts, followed by the 25,200 and 25,300 strikes, which added 15.41 lakh and 14.13 lakh contracts, respectively. The maximum Call unwinding was seen at the 25,100 strike, which shed 6.1 lakh contracts, followed by the 25,050 and 25,150 strikes, which shed 1.39 lakh and 1.11 lakh contracts, respectively.

4) Nifty Put Options Data

On the Put side, the 25,200 strike holds the maximum Put open interest (with 56.43 lakh contracts), which can act as a key support level for the Nifty. It was followed by the 25,000 strike (50.74 lakh contracts) and the 25,100 strike (42.73 lakh contracts).

The maximum Put writing was placed at the 25,200 strike, which saw an addition of 48.26 lakh contracts, followed by the 25,100 and 25,000 strikes, which added 26.58 lakh and 23.74 lakh contracts, respectively. There was hardly any Put unwinding seen in the 24,500-26,100 strike band.

5) Bank Nifty Call Options Data

According to the monthly options data, the 57,000 strike holds the maximum Call open interest, with 14.52 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 (13.88 lakh contracts) and the 55,000 strike (12.17 lakh contracts).

Maximum Call writing was observed at the 55,200 strike (with the addition of 1.06 lakh contracts), followed by the 55,300 strike (75,250 contracts), and the 55,100 strike (71,330 contracts). The maximum Call unwinding was seen at the 57,000 strike, which shed 3.18 lakh contracts, followed by 55,000 and 54,900 strikes, which shed 1.66 lakh and 1.08 lakh contracts, respectively.

6) Bank Nifty Put Options Data

On the Put side, the maximum Put open interest was placed at the 54,000 strike (with 15.19 lakh contracts), which can act as a key support level for the index. This was followed by the 55,000 strike (13.63 lakh contracts) and the 54,500 strike (9.42 lakh contracts).

The maximum Put writing was observed at the 55,000 strike (which added 3.12 lakh contracts), followed by the 54,000 strike (1.77 lakh contracts) and the 55,100 strike (1.21 lakh contracts). The maximum Put winding was seen at the 57,000 strike, which shed 3.52 lakh contracts, followed by the 54,500 and 54,700 strikes, which shed 35,210 and 30,065 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 1.29 on September 16, compared to 1.08 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 market’s fear gauge, continued to stay at lower levels, falling 1.2 percent to 10.27. It remains below all key moving averages, indicating reduced volatility and providing a favourable environment for bulls in the short term.

10) Long Build-up (88 Stocks)

A long build-up was seen in 88 stocks. An increase in open interest (OI) and price indicates a build-up of long positions.

11) Long Unwinding (17 Stocks)

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

12) Short Build-up (41 Stocks)

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

13) Short-Covering (67 Stocks)

67 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: Angel One, HFCL, Oracle Financial Services Software, RBL Bank

Stocks removed from F&O ban: Nil

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