Top 15 Things to Know Before the Opening Bell: Market Trends, Key Levels & Strategies
Market Trends : The Indian stock market experienced a sharp decline on February 28, trapping investors in a bear grip as the Nifty 50 fell nearly 2%, reaching a 9-month low. The March series began on a weak note, with technical indicators showing a sell-on-rally trend. However, given the oversold conditions, experts anticipate a possible pullback, with 22,300 as a key resistance level and 21,800 as a strong support zone.
As we gear up for today’s session, here are the top 15 market insights to help you navigate the trading day effectively:
1) Key Levels for Nifty 50 (22,125)
- Resistance levels: 22,359, 22,440, 22,572
- Support levels: 22,095, 22,013, 21,881
- Technical Formation: Nifty 50 formed a long bearish candle with high volumes, its highest since November 2024.
- Indicators:
- RSI at 22.40 (oversold)
- MACD remains below zero (bearish momentum)
2) Key Levels for Bank Nifty (48,345)
- Resistance levels: 48,522, 48,639, 48,828
- Support levels: 48,143, 48,026, 47,837
- Fibonacci Resistance: 49,416, 50,372
- Fibonacci Support: 47,874, 46,078
- Technical Formation: Bank Nifty formed a bullish candle, showing buying interest at lower levels despite a 399-point loss.
3) Nifty Call Options Data
- Max Call OI at 22,500 (1.18 crore contracts) – key resistance
- Followed by 23,000 & 22,300 strikes
- High Call writing at 22,500, 22,300, and 23,000 strikes, indicating selling pressure at these levels
4) Nifty Put Options Data
- Max Put OI at 21,800 (72.69 lakh contracts) – strong support
- Followed by 21,500 & 22,000 strikes
- Heavy Put writing at 21,800, indicating strong defensive positions
5) Bank Nifty Call Options Data
- Max Call OI at 49,000 (10.08 lakh contracts) – key resistance
- Strong Call writing at 48,500 & 50,000 levels, capping further upside
6) Bank Nifty Put Options Data
- Max Put OI at 48,000 (8.29 lakh contracts) – key support
- Followed by 49,000 & 47,000 strikes
- High Put writing at 48,000 indicates a solid support base
7) Institutional Flow (Rs crore)
| Category | Buy Value | Sell Value | Net Flow |
|---|---|---|---|
| FII | 8,350 | 10,120 | -1,770 |
| DII | 7,290 | 6,450 | +840 |
Foreign Institutional Investors (FIIs) remained net sellers, while Domestic Institutional Investors (DIIs) provided buying support.
8) Put-Call Ratio (PCR)
- Nifty PCR dropped to 0.78, indicating a bearish sentiment.
- A ratio below 0.7 suggests more Call selling, reinforcing the market weakness.
9) India VIX (Volatility Index)
- Increased by 4.53% to 13.91, suggesting rising uncertainty in the market.
10) Long Build-up (Bullish Stocks)
Stocks witnessing a rise in price & open interest (OI), indicating bullish momentum:
- Reliance Industries
- HDFC Bank
- L&T
- Maruti Suzuki
- Tata Steel
- Bajaj Finance
11) Long Unwinding (Profit Booking in 70 Stocks)
- Stocks where traders booked profits after recent gains include:
- Infosys, TCS, Kotak Bank, HUL
12) Short Build-up (Bearish Stocks)
130 stocks saw a rise in OI along with a fall in price, indicating fresh shorts, including:
- Adani Enterprises, Vedanta, Bharti Airtel
13) Short Covering (Bullish Reversal in 9 Stocks)
Some stocks saw short-covering, indicating a potential trend reversal:
- ICICI Bank, Axis Bank, Asian Paints
14) High Delivery Trades (Strong Investment Interest)
Stocks with high delivery-based volumes, indicating strong institutional interest:
- HDFC Bank, Nestle, ITC
15) Stocks Under F&O Ban
- No stocks added or removed from the F&O ban list.
Market Outlook & Trading Strategy
- Short-term View: The market remains in a sell-on-rally mode, with 22,300 as resistance and 21,800 as support.
- Bullish Scenario: A sustainable rebound above 22,300 can trigger further upside.
- Bearish Scenario: If Nifty falls below 21,800, further correction could be expected.
- Stock Picks: Focus on stocks with strong long build-up and high delivery volumes for safer trades.
As the market navigates these key levels, traders should stay cautious and use stop-loss strategies while making informed decisions.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.