Trade setup for September 23: Top 15 things to know before the opening bells

Nifty Trade setup for September 23

The Nifty 50 fell by half a percent, extending its downtrend for the second consecutive session on September 22. However, it managed to defend the breakout zone at 25,150 intraday, which coincides with the 10-day EMA, especially ahead of the weekly F&O expiry scheduled for September 23. Overall, the trend remains in favour of the bulls, as the index stayed well above all key moving averages, despite expectations of near-term consolidation and range-bound trading. If the index holds the 25,150 support level, bulls may drive the index towards 25,450–25,500, followed by 25,700. On the lower side, the levels to watch are 25,000–24,900, according to experts.

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

1) Key Levels For The Nifty 50 (25,202)

Resistance based on pivot points: 25,297, 25,340, and 25,409

Support based on pivot points: 25,159, 25,117, and 25,048

Special Formation: The Nifty 50 formed a bearish candle with a long upper shadow and a minor lower shadow on the daily charts, indicating pressure at higher levels and some buying interest at lower levels. The index sustained above the 10-day EMA intraday, while the MACD, along with the histogram, stayed above the zero line with a positive crossover. The RSI tilted down for another session and is on the verge of a negative crossover, falling below the 60 mark to 58.19. All of this indicates a cautious short-term outlook.

2) Key Levels For The Bank Nifty (55,285)

Resistance based on pivot points: 55,561, 55,668, and 55,840

Support based on pivot points: 55,217, 55,110, and 54,938

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

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

Special Formation: The Bank Nifty formed a bearish candle with a long upper shadow on the daily timeframe, indicating selling pressure at higher levels. Despite this couple of days of downtrend, the banking index sustained above all key moving averages. The MACD stayed in a bullish crossover, with the histogram above the zero line. The RSI, at 54.47, declined but maintained a positive crossover. This indicates a mixed outlook for the banking index, with potential for some near-term volatility.

3) Nifty Call Options Data

According to the weekly options data, the maximum Call open interest was seen at the 25,500 strike (with 2.28 crore contracts). This level can act as a key resistance for the Nifty in the short term. It was followed by the 25,300 strike (1.97 crore contracts), and the 25,400 strike (1.77 crore contracts).

Maximum Call writing was observed at the 25,300 strike, which saw an addition of 1.33 crore contracts, followed by the 25,200 and 25,500 strikes, which added 84.38 lakh and 83.47 lakh contracts, respectively. The maximum Call unwinding was seen at the 25,800 strike, which shed 13.26 lakh contracts, followed by the 25,950 and 25,850 strikes, which shed 9.83 lakh and 7.02 lakh contracts, respectively.

4) Nifty Put Options Data

On the Put side, the 25,200 strike holds the maximum Put open interest (with 1.35 crore contracts), which can act as a key support level for the Nifty. It was followed by the 25,000 strike (1.02 crore contracts) and the 25,100 strike (82.83 lakh contracts).

The maximum Put writing was placed at the 25,200 strike, which saw an addition of 47.47 lakh contracts, followed by the 25,150 and 25,100 strikes, which added 31.7 lakh and 26.47 lakh contracts, respectively. The maximum Put unwinding was seen at the 25,300 strike, which shed 80.12 lakh contracts, followed by the 25,350 and 25,400 strikes, which shed 39.42 lakh and 28.4 lakh contracts, respectively.

5) Bank Nifty Call Options Data

According to the monthly options data, the 56,000 strike holds maximum Call open interest, with 15.42 lakh contracts. This can act as a key resistance level for the index in the short term. It was followed by the 57,000 strike (12.4 lakh contracts) and the 55,500 strike (11.1 lakh contracts).

Maximum Call writing was observed at the 55,600 strike (with the addition of 2.06 lakh contracts), followed by the 55,300 strike (1.09 lakh contracts), and the 57,000 strike (84,525 contracts). The maximum Call unwinding was seen at the 57,200 strike, which shed 50,785 contracts, followed by 54,900 and 55,900 strikes, which shed 20,755 and 16,940 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 14.63 lakh contracts), which can act as a key support level for the index. This was followed by the 54,000 strike (14.52 lakh contracts) and the 54,500 strike (8.57 lakh contracts).

The maximum Put writing was observed at the 55,300 strike (which added 38,395 contracts), followed by the 53,900 strike (35,280 contracts) and the 53,500 strike (16,415 contracts). The maximum Put winding was seen at the 55,500 strike, which shed 57,510 contracts, followed by the 53,800 and 56,000 strikes, which shed 56,630 and 44,450 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 further to 0.72 on September 22, compared to 0.94 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 5.92 percent to 10.56, surpassing the 10-day EMA and testing the 20-day EMA, which may cause discomfort for bulls. However, overall, the VIX is still sustained near lower zones.

10) Long Build-up (33 Stocks)

A long build-up was seen in 33 stocks. An increase in open interest (OI) and price indicates a build-up of long positions.

11) Long Unwinding (44 Stocks)

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

12) Short Build-up (112 Stocks)

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

13) Short-Covering (25 Stocks)

25 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: RBL Bank

Stocks retained in F&O ban: HFCL, Sammaan Capital

Stocks removed from F&O ban: Angel One

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.

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