Bears continued to dominate the market for the sixth consecutive session, dragging the Nifty 50 down by nearly 1 percent on September 26 and 2.65 percent for the week. The bearish sentiment was clearly reflected in both technical and momentum indicators. The index touched the 24,600 mark—representing the 78.6 percent retracement level of the recent rally—a crucial support zone that may determine the market’s next direction. Following the steep fall, a bounce-back cannot be ruled out; however, the sustainability of any recovery remains key. If the index breaks below 24,600, the next support levels to watch would be 24,400–24,300 in the upcoming sessions. On the upside, it may face resistance around the 24,750–24,900 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 (24,655)
Resistance based on pivot points: 24,809, 24,865, and 24,957
Support based on pivot points: 24,626, 24,570, and 24,478
Special Formation: The index formed a long bearish candle on the daily timeframe, continuing its lower high–lower low structure for the sixth straight day. It now trades well below its 20-, 50-, and 100-day EMAs, accompanied by a negative crossover in momentum indicators—all of which signal a prevailing bearish sentiment.
2) Key Levels For The Bank Nifty (54,389)
Resistance based on pivot points: 54,756, 54,895, and 55,119
Support based on pivot points: 54,309, 54,170, and 53,946
Resistance based on Fibonacci retracement: 54,536, 55,131
Support based on Fibonacci retracement: 54,051, 53,562
Special Formation: The banking index also formed a long red candle on the daily charts, extending its lower top–lower bottom structure for the sixth consecutive session, with above-average volumes. It slipped below the 20-, 50-, and 100-day EMAs. Additionally, the RSI (at 40.92) confirmed a bearish crossover, while the MACD histogram continued to fade and dropped below the zero line, though it has yet to show a full bearish crossover. These indicators collectively point to sustained weakness in the banking space.
According to the monthly options data, the maximum Call open interest was placed at the 25,000 strike (with 1.8 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 (1.59 crore contracts), and the 25,100 strike (1.48 crore contracts).
Maximum Call writing was observed at the 24,800 strike, which saw an addition of 1.07 crore contracts, followed by the 24,900 and 24,700 strikes, which added 75.83 lakh and 62.41 lakh contracts, respectively. The maximum Call unwinding was seen at the 25,400 strike, which shed 21.24 lakh contracts, followed by the 25,450 and 25,350 strikes, which shed 14.63 lakh and 11.03 lakh contracts, respectively.
On the Put side, the 24,500 strike holds the maximum Put open interest (with 1.23 crore contracts), which can act as a key support level for the Nifty. It was followed by the 24,600 strike (92.21 lakh contracts) and the 24,000 strike (89.99 lakh contracts).
The maximum Put writing was placed at the 24,500 strike, which saw an addition of 41.98 lakh contracts, followed by the 24,600 and 24,650 strikes, which added 38.91 lakh and 29.38 lakh contracts, respectively. The maximum Put unwinding was seen at the 24,900 strike, which shed 45.61 lakh contracts, followed by the 25,000 and 24,800 strikes, which shed 43.26 lakh and 25.68 lakh contracts, respectively.
5) Bank Nifty Call Options Data
According to the monthly options data, the 55,000 strike holds the maximum Call open interest, with 19.72 lakh contracts. This can act as a key resistance level for the index in the short term. It was followed by the 55,500 strike (17.51 lakh contracts) and the 56,000 strike (15.56 lakh contracts).
Maximum Call writing was observed at the 55,000 strike (with the addition of 10.35 lakh contracts), followed by the 54,800 strike (6.56 lakh contracts), and the 54,700 strike (6.03 lakh contracts). The maximum Call unwinding was seen at the 56,000 strike, which shed 2.65 lakh contracts, followed by 55,700 and 56,200 strikes, which shed 1.09 lakh and 1 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 16.39 lakh contracts), which can act as a key support level for the index. This was followed by the 55,000 strike (8.61 lakh contracts) and the 53,000 strike (8.58 lakh contracts).
The maximum Put writing was observed at the 54,400 strike (which added 4.79 lakh contracts), followed by the 54,300 strike (1.45 lakh contracts) and the 53,900 strike (1.44 lakh contracts). The maximum Put winding was seen at the 54,500 strike, which shed 3.34 lakh contracts, followed by the 55,100 and 55,000 strikes, which shed 3.11 lakh and 2.92 lakh contracts, respectively.
The Nifty Put-Call ratio (PCR), which indicates the mood of the market, declined to 0.63 on September 26 (the lowest level since July 28), compared to 0.68 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, surged 5.96 percent to 11.43, reclaiming its short- and medium-term moving averages. This indicates growing caution among bulls.
A long build-up was seen in 8 stocks. An increase in open interest (OI) and price indicates a build-up of long positions.
11) Long Unwinding (104 Stocks)
104 stocks saw a decline in open interest (OI) along with a fall in price, indicating long unwinding.
12) Short Build-up (97 Stocks)
97 stocks saw an increase in OI along with a fall in price, indicating a build-up of short positions.
5 stocks saw short-covering, meaning a decrease in OI, along with a price increase.
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.
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: Sammaan Capital
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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