Trade Setup for September 18: Top 15 things to know before the opening bell

According to fresh market updates, The market witnessed follow-up buying interest on September 17, with key market indices ending on a mixed note. The Nifty 50 advanced 0.23 percent amid range-bound trading, but the lack of resilience remained evident amid weak technical indicators and elevated crude prices. The Nifty 50 may face immediate resistance in the 23,300-23,400 zone, and a decisive move above this range could drive the index towards 23,500-23,600. On the downside, the major backing is placed in the 23,100-23,000 zone, and a convincing break below this range could trigger panic selling. Overall, in the short term, the index is anticipated to stay within the 23,000-23,600 range, as per specialists.

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

1) Key Marks For The Nifty 50 (23,271)

Resistance based on pivot points: 23,341, 23,381, and 23,446

Backing based on pivot points: 23,211, 23,171, and 23,106

Special Formation: The Nifty 50 formed a bullish candle with a noticeable upper shadow on the daily timeframe, indicating pressure at elevated marks, while the index remained within Tuesday’s wide trading range for another session. All key moving averages continued to trend downward, with the short-term moving averages remaining below the medium- and long-term moving averages. The RSI rose further to 29.95 but remained below its signal line. The MACD maintained its southward trajectory, although the red histogram bar continued to fade for another session, indicating a gradual easing in downside momentum. Overall, the technical indicators continued to suggest a bearish trend, with signs of some moderation in the downside momentum.

2) Key Marks For The Bank Nifty (56,056)

Resistance based on pivot points: 56,425, 56,550, and 56,753

Backing based on pivot points: 56,018, 55,893, and 55,690

Resistance based on Fibonacci retracement: 57,285, 59,261

Backing based on Fibonacci retracement: 55,749, 55,050

Special Formation: The Bank Nifty tested its 10-day EMA intraday and ended 0.42 percent softer on Thursday. The banking index formed a small-bodied bearish candle with a long upper shadow on the daily timeframe, indicating significant pressure at elevated marks, while it continued to trade within Tuesday’s wide trading range for the second straight session. The index remained below all key moving averages, with the short- and medium-term moving averages sloping downward. The RSI at 38.49 remained below its signal line. The MACD maintained its downtrend, although the red histogram bar continued to contract for another session, indicating some easing in downside momentum. Overall, the technical indicators continued to signal a bearish trend, although the contraction in the MACD histogram suggested that the downside momentum was gradually weakening. 3) Nifty Call Options Data

According to the weekly options data, the maximum Call open interest was noted at the 23,500 strike (with 89.83 lakh contracts). This level can act as a key resistance level for the Nifty in the short term. It was followed by the 23,800 strike (83.67 lakh contracts) and 23,700 strike (75.61 lakh contracts).

Maximum Call writing was observed at the 23,300 strike, which saw an addition of 22.14 lakh contracts, followed by the 23,700 and 23,800 strikes, which further noted 21.33 lakh and 20.76 lakh contracts, respectively. The maximum Call unwinding was noted at the 23,200 strike, which shed 9.84 lakh contracts, followed by the 23,150 and 23,100 strikes, which shed 1.72 lakh and 1.42 lakh contracts, respectively. 4) Nifty Put Options Data

On the Put side, the 23,000 strike holds the maximum Put open interest (with 96.52 lakh contracts), which can act as a key backing level for the Nifty in the short term. It was followed by the 23,200 strike (86.99 lakh contracts) and the 23,300 strike (67.93 lakh contracts).

The maximum Put writing was placed at the 23,300 strike, which saw an addition of 35.94 lakh contracts, followed by the 23,000 and 23,250 strikes, which further noted 15.2 lakh and 13.85 lakh contracts, respectively. The maximum Put unwinding was noted at the 23,600 strike, which shed 2.72 lakh contracts, followed by the 23,700 and 23,500 strikes, which shed 85,345 and 65,260 contracts, respectively.

5) Bank Nifty Call Options Data

According to the monthly options data, the maximum Call open interest was noted at the 57,500 strike, with 21.34 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 (11.25 lakh contracts) and the 56,500 strike (6.46 lakh contracts).

Maximum Call writing was observed at the 56,500 strike (with the addition of 1.04 lakh contracts), followed by the 57,000 strike (69,690 contracts) and 56,400 strike (69,660 contracts). The maximum Call unwinding was noted at the 57,500 strike, which shed 94,020 contracts, followed by the 57,300 and 57,200 strikes, which shed 26,430 and 11,130 contracts, respectively.

6) Bank Nifty Put Options Data

On the Put side, the 57,500 strike holds the maximum Put open interest (with 15.81 lakh contracts), which can act as a key level for the index in the short term. This was followed by the 56,000 strike (8.4 lakh contracts) and the 55,000 strike (7.43 lakh contracts).

The maximum Put writing was placed at the 56,300 strike (which further noted 32,940 contracts), followed by the 56,100 strike (29,820 contracts) and 55,500 strike (19,980 contracts). The maximum Put unwinding was noted at the 56,500 strike, which shed 36,000 contracts, followed by the 57,300 and 56,200 strikes which shed 26,850 and 24,600 contracts, respectively. 7) Funds Flow (Rs crore) 8) Put-Call Ratio

The Nifty Put-Call ratio (PCR), which indicates the mood of the market, rose to 0.99 on September 17, compared to 0.96 in previous session.

The increasing PCR, or being elevated 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 elevated than selling in Puts, reflecting a bearish mood in the market. 9) India VIX

The fear index, India VIX, continued its southward journey for the second consecutive session, falling 6.66 percent to 12.29, providing some comfort to the bulls. A decisive and sustained move below the 12 level could provide further comfort to the bulls and bring greater stability to the market. 10) Long Build-up (85 Stocks)

A long build-up was noted in 85 stocks. An gain in open interest (OI) and price indicates a build-up of long positions.

11) Long Unwinding (16 Stocks)

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

12) Short Build-up (31 Stocks)

31 stocks saw an gain in OI along with a decline in price, indicating a build-up of short positions.

13) Short-Covering (80 Stocks)

80 stocks saw short-covering, meaning a decrease in OI, along with a price gain.

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 firms where derivative contracts cross 95 percent of the market-wide position limit.

Stocks further noted to F&O ban: Nil

Stocks retained in F&O ban: Bandhan Bank, Inox Wind, Manappuram Finance, SAIL

Stocks removed from F&O ban: Kaynes Technology India