Stories
Trade Setup September 21: Nifty 50, Bank Nifty, F&O Data, and Key Market Indicators
- •Nifty 50 extended gains for a third session but remains below key moving averages, signaling continued weakness; experts advise a sell-on-rallies strategy below 23,600.
- •Elevated oil prices above $100 and US bond yields above 5% are expected to weigh on market sentiment.
- •Nifty 50 shows a lack of clear direction with a high-wave candlestick pattern, while Bank Nifty rebounded but failed to close above its 10-day EMA, indicating weak recovery.
- •Nifty Call options show maximum open interest at 23,700, acting as resistance, while Put options indicate strong support at 23,300.
- •India VIX, the fear gauge, fell to 11.38, suggesting increased stability, and the Nifty Put-Call ratio rose to 1.06, indicating a firming bullish sentiment.
Key Questions Answered
The Nifty 50 rose 0.33 percent on September 18 but trades below all key moving averages while bears remain largely in control. As long as the index stays below 23,600, consolidation may continue with 23,000 as a crucial support level. The Put-Call ratio jumped to 1.06, and India VIX fell 7.36 percent to 11.38.
Securities banned under the F&O segment include companies where derivative contracts cross 95 percent of the market-wide position limit. Bandhan Bank, Inox Wind, Manappuram Finance, and SAIL were retained in the F&O ban list, while no new stocks were added or removed.
Weekly options data show that the 23,700 strike holds the maximum Call open interest at 94.95 lakh contracts, acting as key short-term resistance. On the Put side, the maximum open interest is at the 23,300 strike with 1.26 crore contracts, serving as a key support level.
