Trade Setup for September 10: Top 15 things to know before the opening bell

Reports coming in for today mention that The Nifty 50 remained in the grip of bears, falling 0.86 percent on September 9 and extending its downtrend for the third straight session, as technical and momentum indicators signalled further softness. Rising crude prices, fuelled by escalating tensions in the Middle East and crossing the $100-a-barrel mark, along with a spike in US 10-year Treasury yields to multi-year highs, additionally weighed on market sentiment. Against this backdrop, experts see the possibility of the Nifty 50 falling towards 23,300, followed by 23,070, which is likely to act as a crucial backing level. That stated, in case of a bounce-back, the 23,500–23,600 zone could act as an immediate hurdle in the short term. Experts advise following a sell-on-climb strategy.

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

1) Key Marks For The Nifty 50 (23,432)

Resistance based on pivot points: 23,532, 23,565, and 23,618

Backing based on pivot points: 23,425, 23,392, and 23,338

Special Formation: The Nifty 50 formed a red candle with an upper shadow after opening gap-down, indicating selling pressure at elevated marks. All key moving averages are sloping downward, while the RSI eased to 26.44, entering oversold territory. The MACD line extended its slide, with the red histogram bar expanding for the third consecutive session. These indicators point to further softness in the near term.

2) Key Marks For The Bank Nifty (56,296)

Resistance based on pivot points: 56,616, 56,721, and 56,892

Backing based on pivot points: 56,274, 56,168, and 55,997

Resistance based on Fibonacci retracement: 56,655, 57,049

Backing based on Fibonacci retracement: 56,024, 55,675

Special Formation: The Bank Nifty additionally entered bearish territory, falling below all key moving averages and forming a bearish candle with a noticeable upper shadow on the daily chart, indicating selling pressure at elevated marks. Its short- and medium-term moving averages continued to slope downward. The RSI declined to 35.90, while the MACD extended its decline below the zero line, with the red histogram bar expanding for the seventh consecutive session. Overall, the technical setup points to continued softness in the near term. 3) Nifty Call Options Data

According to the weekly options data, the 24,000 strike holds the maximum Call open interest (with 1.17 crore contracts). This level can act as a key resistance level for the Nifty in the short term. It was followed by the 23,700 strike (1.05 crore contracts) and 23,800 strike (89.45 lakh contracts).

Maximum Call writing was observed at the 23,500 strike, which saw an addition of 72.18 lakh contracts, followed by the 23,700 and 23,600 strikes, which further noted 56.61 lakh and 45.55 lakh contracts, respectively. There was hardly any Call unwinding noted in the 23,100-24,050 strike band. 4) Nifty Put Options Data

On the Put side, the maximum Put open interest was noted at the 23,500 strike (with 80.46 lakh contracts), which can act as a key level for the Nifty in the short term. It was followed by the 23,400 strike (52.18 lakh contracts) and the 23,100 strike (48.43 lakh contracts).

The maximum Put writing was placed at the 23,500 strike, which saw an addition of 34.82 lakh contracts, followed by the 23,100 and 23,450 strikes, which further noted 28.1 lakh and 17.66 lakh contracts, respectively. The maximum Put unwinding was noted at the 23,700 strike, which shed 10.54 lakh contracts, followed by the 23,650 and 23,800 strikes, which shed 8.25 lakh and 5.45 lakh contracts, respectively.

5) Bank Nifty Call Options Data

According to the monthly options data, the 57,500 strike holds the maximum Call open interest, with 21.91 lakh contracts. This can act as a key resistance level for the index in the short term. It was followed by the 58,000 strike (14.52 lakh contracts) and the 57,000 strike (8.98 lakh contracts).

Maximum Call writing was observed at the 56,500 strike (with the addition of 2.02 lakh contracts), followed by the 57,000 strike (1.35 lakh contracts) and 56,600 strike (75,420 contracts). The maximum Call unwinding was noted at the 58,000 strike, which shed 38,310 contracts, followed by the 57,800 and 57,600 strikes, which shed 21,180 and 18,870 contracts, respectively.

6) Bank Nifty Put Options Data

On the Put side, the maximum Put open interest was noted at the 57,500 strike (with 17.66 lakh contracts), which can act as a key level for the index in the short term. This was followed by the 57,000 strike (8.88 lakh contracts) and the 58,000 strike (8.5 lakh contracts).

The maximum Put writing was placed at the 56,300 strike (which further noted 30,240 contracts), followed by the 56,500 strike (29,640 contracts) and 56,600 strike (27,270 contracts). The maximum Put unwinding was noted at the 57,500 strike, which shed 95,310 contracts, followed by the 57,000 and 58,000 strikes which shed 34,770 and 34,740 contracts, respectively. 7) Funds Flow (Rs crore) 8) Put-Call Ratio

The Nifty Put-Call ratio (PCR), which indicates the mood of the market, eased to 0.75 on September 9, compared to 0.83 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

India VIX, the volatility index, surged 6.81 percent to 11.92, moving above its short-term moving averages and inching closer to its medium-term moving average. The spike signals some caution for bulls, while a sustained move above the 12–13 zone could gain discomfort for them. 10) Long Build-up (30 Stocks)

A long build-up was noted in 30 stocks. An gain in open interest (OI) and price indicates a build-up of long positions.

11) Long Unwinding (52 Stocks)

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

12) Short Build-up (98 Stocks)

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

13) Short-Covering (35 Stocks)

35 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: Bandhan Bank

Stocks retained in F&O ban: Inox Wind, Kaynes Technology India, LIC Housing Finance, Manappuram Finance, SAIL

Stocks removed from F&O ban: Nil