Trade Setup for February 10: Top 15 Things to Know Before the Opening Bell
Trade Setup for February 10: The stock market remained under pressure, with the Nifty 50 declining for the third straight session on February 7, losing 43 points amid high volatility. The market reacted to the RBI’s 25 bps rate cut, which was in line with expectations. However, the continuation of lower tops-lower bottoms formations and the index falling below the 200-day EMA (23,620) indicate a weaker short-term trend. If the Nifty fails to hold the 23,500-23,400 support zone, further selling pressure could follow. On the flip side, staying above this level could push the index toward 23,800, a key resistance area.
To help you navigate the market and spot profitable trades, here are the top 15 key market indicators for February 10.
1. Key Levels for Nifty 50 (23,560)
The Nifty 50 faced selling pressure, forming a bearish candlestick pattern on the daily charts. However, it still holds above the 10 and 20-day EMAs, which could act as a cushion for further declines.
📌 Resistance Levels: 23,662, 23,721, 23,817
📌 Support Levels: 23,470, 23,411, 23,315
2. Key Levels for Bank Nifty (50,159)
The Bank Nifty struggled to hold above the 50 and 200-day EMAs, forming a bearish candlestick pattern with a long upper wick, indicating minor weakness. However, it still maintains a positive trend above the 10 and 20-day EMAs.
📌 Resistance Levels: 50,518, 50,700, 50,995
📌 Support Levels: 49,930, 49,748, 49,453
📌 Fibonacci Resistance Levels: 50,381, 51,162
📌 Fibonacci Support Levels: 47,875, 46,078
3. Nifty Call Options Data
📌 Maximum Call OI: 24,000 (84.13 lakh contracts)
📌 Significant Call Writing: 24,000 (36.16 lakh contracts), 23,800 (33.62 lakh contracts)
👉 This suggests 24,000 could act as a key resistance for the Nifty in the short term.
4. Nifty Put Options Data
📌 Maximum Put OI: 22,600 (45.66 lakh contracts)
📌 Significant Put Writing: 23,200 (25.77 lakh contracts), 22,800 (18.09 lakh contracts)
👉 23,200 is a key support level in the short term.
5. Bank Nifty Call Options Data
📌 Maximum Call OI: 52,000 (18.66 lakh contracts)
📌 Significant Call Writing: 51,000 (2.36 lakh contracts), 50,500 (1.7 lakh contracts)
👉 52,000 is a major resistance level for Bank Nifty.
6. Bank Nifty Put Options Data
📌 Maximum Put OI: 49,000 (14 lakh contracts)
📌 Significant Put Writing: 51,300 (96,960 contracts), 50,500 (50,580 contracts)
👉 49,000 is a key support level in the short term.
7. Funds Flow (Rs Crore)
| Date | FII Net Buy/Sell | DII Net Buy/Sell |
|---|---|---|
| Feb 7 | -₹1,217 Cr | ₹2,092 Cr |
👉 Domestic investors continue to support the market, absorbing FII outflows.
8. Put-Call Ratio (PCR)
📌 Nifty PCR: 0.83 (down from 0.95)
👉 A falling PCR below 0.7 signals a bearish market.
9. India VIX (Volatility Index)
📌 India VIX: 13.69 (-3.46%)
👉 Low volatility favors bulls, but a spike could trigger sharp market swings.
10. Long Build-up (52 Stocks)
Stocks showing a rise in price and open interest, indicating strong bullish sentiment.
11. Long Unwinding (45 Stocks)
Stocks where price is falling along with a decrease in open interest, signaling profit-booking or exit from long positions.
12. Short Build-up (70 Stocks)
Stocks witnessing a drop in price and an increase in open interest, signaling bearish sentiment.
13. Short-Covering (63 Stocks)
Stocks where price increased but open interest dropped, meaning bears are exiting their positions.
14. High Delivery Trades
📌 Stocks with high delivery volume indicate long-term investor interest.
15. Stocks Under F&O Ban
📌 Added: Manappuram Finance
📌 Retained: None
📌 Removed: None
👉 Stocks under F&O ban tend to remain volatile.
Conclusion: Market Outlook for February 10
- Nifty is in a weak short-term trend, but key support at 23,400-23,500 could prevent further decline.
- Bank Nifty remains positive but faces resistance near 50,500-50,995.
- FII outflows continue, but DII buying provides support.
- Low volatility (India VIX) favors a stable market.
- Key resistance: Nifty at 23,800-24,000, Bank Nifty at 50,500-52,000.
👉 Traders should watch 23,500 on Nifty and 50,000 on Bank Nifty as key support levels. A breakout above 23,800 or 50,500 could trigger fresh buying.
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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.