Trade setup for September 9: Top 15 things to know before the opening bells

Nifty Trade setup for September 9

The Nifty 50 extended its upward journey for the fourth consecutive session, closing 32 points higher on September 8, after erasing 112 points from the day’s high due to profit booking. Despite the gains, the index lacked strong momentum and remained rangebound, with stiff upper resistance at 24,900–25,000 and immediate support at 24,700. For a decisive upmove toward 25,000, the index needs to clear 24,800 (which is near the 50-day EMA). Until then, consolidation is likely to persist. A close below 24,700 could open the door for a decline toward 24,500, experts said.

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

1) Key Levels For The Nifty 50 (24,773)

Resistance based on pivot points: 24,855, 24,886, and 24,937

Support based on pivot points: 24,752, 24,721, and 24,670

Special Formation: The Nifty 50 formed a small bearish candle with a long upper shadow on the daily chart, reflecting selling pressure at higher levels amid rangebound trading. Despite this, the index managed to sustain above the 10-, 20-, and 100-day EMAs, as well as the midline of the Bollinger Bands—a positive sign. The RSI climbed to 50.39, showing a bullish crossover. The MACD maintained its positive crossover, with further strengthening in the histogram. Together, these signal underlying bullish sentiment, though not yet accompanied by a strong directional breakout.

2) Key Levels For The Bank Nifty (54,187)

Resistance based on pivot points: 54,430, 54,537, and 54,709

Support based on pivot points: 54,085, 53,978, and 53,806

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 Doji-like candlestick pattern on the daily chart, following a failed attempt to sustain above the previous week’s high—a sign of indecision between bulls and bears. Technically, the index continues to trade below key moving averages: the 10-, 20-, 50-, and 100-day EMAs, and the midline of the Bollinger Bands. The MACD remains in a bearish crossover, with the histogram below the zero line. The RSI stands at 39.16, but has given a positive crossover, suggesting a mild improvement in momentum. Overall, the setup reflects short-term uncertainty but a potential base formation above the 200-day EMA.

3) Nifty Call Options Data

According to the weekly options data, the maximum Call open interest was seen at the 25,000 strike (with 2.12 crore contracts). This level can act as a key resistance for the Nifty in the short term. It was followed by the 24,900 strike (1.67 crore contracts), and the 25,500 strike (1.33 crore contracts).

Maximum Call writing was observed at the 24,900 strike, which saw an addition of 37.52 lakh contracts, followed by the 24,950 and 24,850 strikes, which added 34.8 lakh and 28.58 lakh contracts, respectively. The maximum Call unwinding was seen at the 24,750 strike, which shed 16.5 lakh contracts, followed by the 24,700 and 25,500 strikes, which shed 16.06 lakh and 11.33 lakh contracts, respectively.

4) Nifty Put Options Data

On the Put side, the 24,500 strike holds the maximum Put open interest (with 1.4 crore contracts), which can act as a key support level for the Nifty. It was followed by the 24,700 strike (1.21 crore contracts) and the 24,600 strike (1.16 crore contracts).

The maximum Put writing was placed at the 24,800 strike, which saw an addition of 44.63 lakh contracts, followed by the 24,700 and 24,850 strikes, which added 44.09 lakh and 43.27 lakh contracts, respectively. The maximum Put unwinding was seen at the 25,500 strike, which shed 71,175 contracts, followed by the 25,200 and 24,150 strikes, which shed 59,925 and 54,075 contracts, respectively.

5) Bank Nifty Call Options Data

According to the monthly options data, the 56,000 strike continued to hold the maximum Call open interest, with 13.68 lakh contracts. This can act as a key resistance level for the index in the short term. It was followed by the 55,000 strike (13.22 lakh contracts) and the 54,000 strike (8.99 lakh contracts).

Maximum Call writing was observed at the 55,200 strike (with the addition of 49,980 contracts), followed by the 55,800 strike (48,335 contracts), and the 56,200 strike (33,460 contracts). The maximum Call unwinding was seen at the 54,000 strike, which shed 1.22 lakh contracts, followed by 54,100 and 54,200 strikes, which shed 46,375 and 45,150 contracts, respectively.

6) Bank Nifty Put Options Data

On the Put side, the maximum Put open interest was seen at the 54,000 strike (with 13.89 lakh contracts), which can act as a key support level for the index. This was followed by the 53,000 strike (8.78 lakh contracts) and the 55,000 strike (7.7 lakh contracts).

The maximum Put writing was observed at the 54,000 strike (which added 95,750 contracts), followed by the 54,200 strike (89,495 contracts) and the 54,500 strike (76,440 contracts). The maximum Put winding was seen at the 52,500 strike, which shed 47,150 contracts, followed by the 54,100 and 54,900 strikes, which shed 25,060 and 13,860 contracts, respectively.

7) Funds Flow (Rs crore)

8) Put-Call Ratio

The Nifty Put-Call ratio (PCR), which indicates the mood of the market, advanced to 0.95 on September 08, compared to 0.86 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, the market’s fear gauge, remained near lower zones despite a 0.53 percent rise, closing at 10.84. This low reading indicates muted volatility expectations in the near term and provides a degree of comfort to bulls.

10) Long Build-up (78 Stocks)

A long build-up was seen in 78 stocks. An increase in open interest (OI) and price indicates a build-up of long positions.

11) Long Unwinding (21 Stocks)

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

12) Short Build-up (54 Stocks)

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

13) Short-Covering (60 Stocks)

60 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

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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