Stories
Trade Setup September 30: Nifty faces bear grip, key levels to watch before opening bell
- •Nifty 50 remains under bear grip with weakening technical structure and US Treasury yields near two-decade highs; a break below 22,570 could lead to further downside towards 22,380 and 22,182.
- •Experts advise a sell-on-rallies strategy, with Nifty resistance at 22,750, 22,793, 22,863 and support at 22,610, 22,566, 22,496.
- •Nifty formed a hammer-like candlestick pattern, indicating buying interest at lower levels, but requires strong follow-through for confirmation; all indicators point to continued weakness.
- •Bank Nifty formed a doji-like candlestick pattern, signaling potential trend reversal but needing confirmation; remains below key moving averages with indicators showing continued pressure.
- •Nifty Put-Call ratio rose to 0.91, indicating a potential firming of bullish sentiment, while India VIX fell to 13.41 but remains elevated, signaling caution.
Key Questions Answered
Tuesday's low of 22,570 acts as a crucial support level for the Nifty 50, with a break below potentially triggering a downside towards the 200-week EMA at 22,380 and the April low of 22,182. Conversely, holding above 22,570 could push the index toward the 22,800–23,000 zone, while resistance levels are identified at 22,750, 22,793, and 22,863.
The Nifty Put-Call ratio rose to 0.91 on September 29 from 0.71 in the previous session, indicating that traders sold more Put options than Call options. Meanwhile, the India VIX fell by 1.65 percent to settle at 13.41, though it remained in an elevated zone reflecting caution among market participants.
SAIL has been retained in the F&O segment ban as its derivative contracts crossed 95 percent of the market-wide position limit. Meanwhile, no new stocks were added, and LIC Housing Finance was removed from the ban list.
