Trade Setup for February 21: Top 15 Things to Know Before the Opening Bell
Trade Setup : The Indian stock market remained in consolidation mode for the fourth consecutive session on February 20. The Nifty 50 index declined by 20 points after touching a new low for 2025 but managed to hold the 22,800 support level. On the upside, resistance at 23,000 remains a crucial barrier.
A bullish candlestick pattern formed on the daily charts, indicating that buyers have the upper hand. If the bulls gain further momentum, the next targets will be 23,000 and 23,200, near the 20-day EMA and the 61.8% Fibonacci retracement level. However, if the index remains below 23,000, a further range-bound movement could persist, with key support at 22,700.
Here are 15 key data points to help you prepare for today’s market session:
1) Nifty 50 Key Levels (22,913)
📌 Resistance Levels: 22,926 | 22,952 | 22,994
📌 Support Levels: 22,841 | 22,815 | 22,772
🔸 Market Formation: The bullish candlestick signals buying strength, but the index remains below key moving averages, indicating a cautious market sentiment.
2) Bank Nifty Key Levels (49,335)
📌 Resistance Levels: 49,430 | 49,502 | 49,619
📌 Support Levels: 49,197 | 49,125 | 49,009
🔸 Fibonacci Levels:
- Resistance: 50,366 | 51,158
- Support: 47,866 | 46,078
🔸 Market Formation: A Doji candlestick suggests indecision between bulls and bears. However, as long as Bank Nifty holds above 48,800, the short-term trend remains positive.
3) Nifty Call Option Data
📌 Highest Call Open Interest (OI) Levels (Resistance)
- 23,500 Strike → 92.59 lakh contracts
- 24,000 Strike → 92.41 lakh contracts
- 23,000 Strike → 74.05 lakh contracts
📌 Major Call Writing Activity
- 23,500 Strike → 24.83 lakh contracts added
- 23,000 Strike → 18.59 lakh contracts added
4) Nifty Put Option Data
📌 Highest Put Open Interest (OI) Levels (Support)
- 22,000 Strike → 87.6 lakh contracts
- 23,000 Strike → 62.59 lakh contracts
- 22,500 Strike → 55.01 lakh contracts
📌 Major Put Writing Activity
- 22,300 Strike → 34.33 lakh contracts added
- 22,000 Strike → 28.56 lakh contracts added
5) Bank Nifty Call Option Data
📌 Highest Call Open Interest (OI) Levels (Resistance)
- 51,000 Strike → 22.46 lakh contracts
- 50,000 Strike → 15.12 lakh contracts
📌 Major Call Writing Activity
- 50,700 Strike → 5.82 lakh contracts added
6) Bank Nifty Put Option Data
📌 Highest Put Open Interest (OI) Levels (Support)
- 49,000 Strike → 14.83 lakh contracts
- 48,500 Strike → 14.35 lakh contracts
📌 Major Put Writing Activity
- 48,500 Strike → 4.11 lakh contracts added
7) Fund Flow (Rs Crore)
📌 Foreign Institutional Investors (FIIs): Data awaited
📌 Domestic Institutional Investors (DIIs): Data awaited
8) Put-Call Ratio (PCR)
📌 Nifty PCR: 0.90 (vs 0.80 in the previous session)
🔹 A rising PCR above 0.7 indicates bullish sentiment, while a drop below 0.7 suggests bearish momentum.
9) India VIX (Volatility Index)
📌 India VIX: Down 4.78% to 14.68
🔹 Falling volatility is positive for the bulls as it reduces uncertainty.
10) Stocks with Long Build-Up (80 Stocks)
🔹 Stocks showing a rise in open interest (OI) and price, indicating strong buying interest.
11) Stocks with Long Unwinding (14 Stocks)
🔹 Stocks where OI and price are falling, signaling profit-booking.
12) Stocks with Short Build-Up (46 Stocks)
🔹 Stocks where OI is rising, but prices are falling, indicating bearish sentiment.
13) Stocks with Short Covering (92 Stocks)
🔹 Stocks where OI is declining, and prices are rising, suggesting short positions are being covered.
14) High Delivery Trades
📌 Stocks with higher delivery percentages indicate investor accumulation rather than speculative trading.
15) Stocks Under F&O Ban
📌 Stocks retained in F&O ban: Manappuram Finance
📌 New stocks added to F&O ban: None
📌 Stocks removed from F&O ban: None
Technical Summary of Key Indices (Table Format)
| Index | Closing Level | Resistance Levels | Support Levels | Special Formation |
|---|---|---|---|---|
| Nifty 50 | 22,913 | 22,926, 22,952, 22,994 | 22,841, 22,815, 22,772 | Bullish candlestick, strong recovery from lows |
| Bank Nifty | 49,335 | 49,430, 49,502, 49,619 | 49,197, 49,125, 49,009 | Doji pattern, indecision in trend |
Conclusion: Market Outlook for February 21
The Nifty 50 and Bank Nifty continue to trade within a tight range, but the bullish candlestick formation on Nifty suggests buying interest. The Put-Call Ratio (0.90) and declining India VIX favor a stable to positive outlook. However, resistance at 23,000 (Nifty) and 50,000 (Bank Nifty) remains a hurdle.
Traders should watch for a breakout above these levels for further upside momentum. Otherwise, consolidation may continue.
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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.