Trade Setup for February 13: Top 15 Things to Know Before the Opening Bell
Trade Setup for February 13: The Indian stock market remained volatile on February 12, with the benchmark Nifty 50 showing signs of recovery from the day’s low. However, it continued its downward trajectory for the sixth consecutive session, closing 27 points lower. The overall trend remains bearish, but technical indicators suggest a potential rebound if the index sustains above 23,000.
Experts believe that if Nifty closes above 23,000, the immediate resistance levels will be 23,200-23,300. Conversely, a fall below 23,000 could open the door for a dip towards 22,800.
Key Market Levels to Watch
1. Nifty 50 Levels (23,045)
- Resistance Levels: 23,128 | 23,210 | 23,342
- Support Levels: 22,864 | 22,782 | 22,650
Special Technical Formation
Nifty formed a Long-Legged Doji candlestick pattern, indicating market indecision. Historically, this pattern suggests a potential trend reversal. However, the index remains below all key moving averages (10, 20, 50, 100, and 200-day EMAs), positioning it in the lower band of Bollinger Bands, reinforcing the bearish sentiment.
2. Bank Nifty Levels (49,479)
- Resistance Levels: 49,675 | 49,904 | 50,273
- Support Levels: 48,936 | 48,707 | 48,337
Special Technical Formation
The Bank Nifty formed a pattern similar to Nifty’s Long-Legged Doji, closing 76 points higher after recovering 745 points from its intraday low. However, the index remains below all key moving averages and has dropped below the previous swing low, signaling a negative trend. Despite this, it defended the midline of the Bollinger Bands, which is a positive sign for bulls.
Options Data Insights
3. Nifty Call Options Data
- Key Resistance Level: 24,000 strike (1.36 crore contracts)
- Other Heavy Resistance Zones:
- 23,500 strike (1.21 crore contracts)
- 23,600 strike (1.11 crore contracts)
The highest Call writing was observed at 23,000, adding 33.3 lakh contracts, followed by 23,600 and 23,500 strikes.
4. Nifty Put Options Data
- Key Support Level: 22,500 strike (1.15 crore contracts)
- Other Strong Support Zones:
- 22,700 strike (91.59 lakh contracts)
- 22,800 strike (68.77 lakh contracts)
The highest Put writing was observed at 22,500, adding 24.38 lakh contracts, followed by 22,400 and 22,850 strikes.
5. Bank Nifty Call Options Data
- Key Resistance Level: 51,000 strike (16.23 lakh contracts)
- Other Resistance Zones:
- 50,000 strike (12.13 lakh contracts)
- 50,500 strike (9.66 lakh contracts)
The highest Call writing was seen at 51,000, with an addition of 1.12 lakh contracts.
6. Bank Nifty Put Options Data
- Key Support Level: 49,000 strike (13.66 lakh contracts)
- Other Support Zones:
- 48,000 strike (11.87 lakh contracts)
- 50,000 strike (9.47 lakh contracts)
The highest Put writing was at 48,800, adding 69,270 contracts.
7. Funds Flow (Rs Crore)
| Category | Buy Value | Sell Value | Net Value |
|---|---|---|---|
| FII (Foreign Institutional Investors) | 5,120 | 5,684 | -564 |
| DII (Domestic Institutional Investors) | 4,870 | 3,932 | +938 |
Foreign Institutional Investors (FIIs) continued their selling spree, while Domestic Institutional Investors (DIIs) provided some support by buying in the market.
8. Put-Call Ratio (PCR)
- Nifty PCR: 0.75 (previous session: 0.69)
- A PCR above 0.7 signals a bullish sentiment, while a decline below 0.5 reflects a bearish mood.
9. India VIX (Volatility Index)
- India VIX rose 0.17% to 14.9, continuing its upward streak for the third session.
- A rising VIX signals increased uncertainty and potential volatility ahead.
Stock Market Action in Derivatives
10. Long Build-Up (52 Stocks)
- A long build-up indicates an increase in both price and open interest (OI).
11. Long Unwinding (44 Stocks)
- A long unwinding is seen when there’s a decline in OI and price, signaling profit-booking.
12. Short Build-Up (81 Stocks)
- A short build-up happens when there is a rise in OI along with a price drop, indicating increased bearish bets.
13. Short Covering (53 Stocks)
- Short covering occurs when OI decreases while prices rise, signaling bears closing their positions.
14. High Delivery Stocks
High delivery volumes indicate strong investor interest in these stocks for the long term.
15. Stocks Under F&O Ban
- Stocks in Ban List: Manappuram Finance
- New Additions: None
- Stocks Removed from Ban: None
Market Outlook for February 13
The market remains under pressure, but technical indicators suggest a possible rebound if Nifty holds above 23,000.
- Short-term investors should watch key resistance at 23,200-23,300.
- If Nifty breaks below 23,000, support at 22,800 becomes crucial.
- Volatility (VIX) remains high, signaling potential market swings.
Traders should track options data, FII-DII flows, and key technical levels before making decisions.
Key Takeaways for Traders
✔️ Watch for a bounce-back above 23,000 – could trigger bullish momentum.
✔️ Avoid aggressive longs unless Nifty clears 23,200 convincingly.
✔️ Keep an eye on India VIX and FII-DII flows for sentiment clues.
Will the bulls stage a comeback, or will bears continue their dominance? Stay tuned for the latest updates!
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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.