Top 15 Things to Know Before the Market Opens on February 28
Top 15 Things to Know : The Nifty 50 continued to exhibit a rangebound trend, closing the monthly F&O expiry session slightly negative on February 27. It remained within the 22,500-22,700 range for the third consecutive session after the gap-down opening on February 24. With volatility (VIX) dropping, bulls found some comfort. Market experts suggest that if Nifty decisively breaks above 22,700, an uptrend towards 23,000 could be possible. However, a breach below 22,500 may open doors to the 22,400-22,350 zone. Until then, consolidation is likely to continue.
As we step into the trading session on February 28, here are 15 key factors to watch for profitable trading decisions.
1. Key Levels for Nifty 50 (22,545)
- Resistance levels: 22,596, 22,620, 22,661
- Support levels: 22,516, 22,491, 22,451
- Technical Insight: Nifty formed a bearish candlestick resembling a high-wave pattern on the daily chart, hinting at uncertainty. The RSI indicator (29.57) remains in the oversold zone, signaling the potential for a bounce back. However, all major moving averages (10, 20, 50, 100, and 200-day EMAs) point southward, indicating a bearish trend.
2. Key Levels for Bank Nifty (48,744)
- Resistance levels: 48,913, 48,995, 49,127
- Support levels: 48,649, 48,568, 48,436
- Technical Insight: The Bank Nifty formed a Doji candlestick, suggesting indecision among traders. It remains above the support trendline and is approaching the 10-day EMA at 49,000. RSI (41.8) has been trending upwards for two sessions, hinting at a possible reversal.
3. Nifty Call Options Data
- Highest open interest (OI) at the 23,000 strike (51.87 lakh contracts) suggests strong resistance.
- 22,600 strike (46.82 lakh contracts) and 23,500 strike (39.79 lakh contracts) follow.
- Major Call writing at 22,600, 22,500, and 23,500 strikes.
4. Nifty Put Options Data
- Highest open interest (OI) at the 22,500 strike (50.41 lakh contracts) indicates strong support.
- Major Put writing seen at 22,500, 22,600, and 21,500 strikes.
5. Bank Nifty Call Options Data
- Key resistance at the 49,000 strike (9.7 lakh contracts), followed by 50,000 and 50,500 strikes.
- Major Call writing at 49,000, 50,000, and 50,500 strikes.
6. Bank Nifty Put Options Data
- Key support at the 49,000 strike (8.66 lakh contracts), followed by 48,000 and 47,000 strikes.
- Major Put writing at 49,000, 48,000, and 50,000 strikes.
7. Funds Flow (Rs Crore)
| Category | Inflow | Outflow | Net Flow |
|---|---|---|---|
| FII (Foreign Investors) | 5,843 | 6,127 | -284 |
| DII (Domestic Investors) | 4,768 | 4,522 | 246 |
8. Put-Call Ratio (PCR)
- The Nifty PCR surged to 0.98 from 0.77, indicating a shift toward a bullish market sentiment.
9. India VIX (Volatility Index)
- India VIX dropped 2.97% to 13.31, its lowest level since December 27, 2024, signaling stability and strength for the bulls.
10. Long Build-Up (1 Stock)
- A long build-up was observed in one stock, indicating a positive sentiment in that counter.
11. Long Unwinding (154 Stocks)
- 154 stocks witnessed long unwinding, meaning traders are exiting long positions.
12. Short Build-Up (12 Stocks)
- 12 stocks saw an increase in open interest along with a price drop, signaling fresh short positions.
13. Short-Covering (48 Stocks)
- 48 stocks saw short covering, meaning traders closed their short positions as stock prices moved up.
14. High Delivery Trades & Rollovers
- Stocks with high delivery volumes indicate strong investor interest.
- The highest rollovers on expiry day suggest market participants are carrying forward their positions to the next series.
15. Stocks Under F&O Ban
- New additions: None
- Retained in the ban: None
- Removed from the ban: Manappuram Finance
Conclusion
The market is at a crucial juncture with Nifty 50 consolidating within the 22,500-22,700 range. A breakout above 22,700 may trigger a move towards 23,000, while a breakdown below 22,500 could push it towards 22,350. Bank Nifty is also showing signs of indecision with key levels near 49,000. India VIX remaining low suggests a stable outlook, and a rising PCR indicates bullish sentiment. Traders should keep an eye on key resistance and support levels, FII/DII flows, and option data before making trading 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.