Trade Setup for February 19: Top 15 Things to Know Before the Opening Bell
Top 15 Things to Know : The Indian stock market had a subdued trading session on February 18, with the benchmark Nifty 50 closing 14 points lower in a 191-point range. The index continues to take support at 22,800, while 23,000 remains a key resistance level amid rising volatility. A breakout above 23,000 could push the index towards 23,200 (20-day EMA) and 23,500 (50-day EMA), whereas a decisive closing below 22,800 may trigger a decline toward 22,600, according to market experts.
As investors gear up for the trading day, here are 15 key data points to help you strategize your trades effectively.
1) Key Levels for Nifty 50 (22,945)
- Resistance Levels (Pivot Points): 22,986, 23,031, 23,104
- Support Levels (Pivot Points): 22,840, 22,795, 22,722
- Special Formation: The Nifty 50 formed a bearish candlestick with a long lower shadow, resembling a Dragonfly Doji-like pattern. While this could indicate a bullish reversal, confirmation in the next session is crucial. The index is currently below all key moving averages, signaling weakness.
2) Key Levels for Bank Nifty (49,087)
- Resistance (Pivot Points): 49,273, 49,394, 49,591
- Support (Pivot Points): 48,881, 48,759, 48,563
- Resistance (Fibonacci Levels): 49,401, 50,370
- Support (Fibonacci Levels): 47,868, 46,078
- Special Formation: Bank Nifty dropped 172 points, forming a bearish candlestick with upper and lower shadows, reflecting buying at lower levels but selling pressure at higher levels.
3) Nifty Call Options Data
- Highest Open Interest:
- 23,500 strike: 92.46 lakh contracts (Key Resistance)
- 23,800 strike: 90.9 lakh contracts
- 24,000 strike: 87.69 lakh contracts
- Maximum Call Writing:
- 23,200 strike: 32.98 lakh contracts
- 23,800 strike: 30.96 lakh contracts
- 23,000 strike: 18.27 lakh contracts
4) Nifty Put Options Data
- Highest Open Interest:
- 22,000 strike: 84.81 lakh contracts (Key Support)
- 22,500 strike: 61.44 lakh contracts
- 22,700 strike: 60.51 lakh contracts
- Maximum Put Writing:
- 22,700 strike: 23.39 lakh contracts
- 22,200 strike: 19.9 lakh contracts
- 22,450 strike: 19.45 lakh contracts
5) Bank Nifty Call Options Data
- Highest Open Interest:
- 51,000 strike: 19.34 lakh contracts (Key Resistance)
- 50,000 strike: 14.39 lakh contracts
- 50,500 strike: 12.31 lakh contracts
- Maximum Call Writing:
- 51,000 strike: 2.12 lakh contracts
- 50,000 strike: 1.36 lakh contracts
- 49,000 strike: 1.15 lakh contracts
6) Bank Nifty Put Options Data
- Highest Open Interest:
- 48,000 strike: 12.08 lakh contracts (Key Support)
- 49,000 strike: 11.97 lakh contracts
- 50,000 strike: 7.99 lakh contracts
- Maximum Put Writing:
- 47,700 strike: 72,120 contracts
- 47,400 strike: 26,910 contracts
- 50,400 strike: 25,830 contracts
7) Funds Flow (₹ Crore)
| Category | Inflow | Outflow | Net Flow |
|---|---|---|---|
| FIIs (Foreign Institutional Investors) | XX | XX | XX |
| DIIs (Domestic Institutional Investors) | XX | XX | XX |
(Updated figures to be checked before market opens.)
8) Put-Call Ratio (PCR)
- Nifty PCR:0.84 (Down from 0.87)
- A PCR below 0.7 suggests bearish sentiment, while a higher PCR (>1.0) signals a bullish bias.
9) India VIX (Volatility Index)
- India VIX fell 0.37% to 15.67, marking its first drop in seven sessions.
- Despite the dip, volatility remains high, keeping market participants cautious.
10) Long Build-up (37 Stocks)
- Stocks with increased price & open interest, signaling bullish momentum.
11) Long Unwinding (73 Stocks)
- Stocks with falling price & open interest, suggesting profit booking.
12) Short Build-up (84 Stocks)
- Stocks with falling price & rising open interest, indicating bearish bets.
13) Short Covering (36 Stocks)
- Stocks where shorts are being covered, leading to price rebounds.
14) High Delivery Trades
Stocks with a high percentage of delivery-based trades indicate long-term investor interest.
15) Stocks Under F&O Ban
- Added: None
- Retained: Manappuram Finance
- Removed: Deepak Nitrite
Market Outlook for February 19
- Nifty 50: Needs to sustain above 23,000 for an uptrend, with 22,800 as crucial support.
- Bank Nifty: Watch 49,400 resistance and 48,500 support for trade direction.
- Volatility: With India VIX still elevated, expect sharp moves.
Traders should keep an eye on global market cues, institutional flows, and macroeconomic developments for better risk management.
Final Thoughts
The market continues to remain in a consolidation phase, and a clear breakout above resistance or breakdown below support could dictate the next move. Traders should stay cautious, manage risks effectively, and look for opportunities in stocks with strong technical setups.
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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.