Trade Setup for February 24: Top 15 Things to Know Before the Opening Bell
Trade Setup for February 24 : The Indian stock market continued its downward trend last week, with the Nifty 50 hitting a new low for 2025 on February 21. The index closed half a percent lower, marking its fourth consecutive session in the red. On Friday, market sentiment weakened further as the Nifty approached 22,700.
A decisive break below this level could trigger further downside toward 22,600, which is a key trendline support. If the index fails to hold, a steeper correction cannot be ruled out. On the flip side, a rebound from these levels could push the Nifty toward 23,000–23,100, where strong resistance is expected. If the index manages to sustain above 23,200 (the midline of the Bollinger Bands), experts believe it could signal the start of a new uptrend.
To help traders navigate the market, here are 15 key data points to watch before the opening bell:
1) Key Levels for Nifty 50 (22,796)
- Resistance Levels (Pivot Points): 22,889, 22,936, 23,013
- Support Levels (Pivot Points): 22,736, 22,688, 22,612
- Technical Formation: The Nifty formed a bearish high-wave candlestick pattern on the daily chart, reflecting high volatility. It remains below all key moving averages (10, 20, 50, 100, and 200-day EMAs) and the resistance trendline. Momentum indicators such as MACD and RSI are in negative territory, suggesting weakness.
2) Key Levels for Bank Nifty (48,981)
- Resistance Levels (Pivot Points): 49,225, 49,353, 49,560
- Support Levels (Pivot Points): 48,810, 48,682, 48,475
- Fibonacci Resistance Levels: 49,403, 50,371
- Fibonacci Support Levels: 47,866, 46,078
- Technical Formation: The Bank Nifty formed a similar pattern, trading near the lower end of the Bollinger Bands. It remains below all key moving averages, with momentum indicators suggesting that bears are in control.
3) Nifty Call Options Data
- Highest Open Interest (OI):
- 23,000 strike (1.04 crore contracts) – key resistance
- 23,500 strike (99.47 lakh contracts)
- 23,100 strike (84.05 lakh contracts)
- Maximum Call Writing:
- 23,100 strike (54.92 lakh contracts)
- 22,800 strike (34.12 lakh contracts)
- 23,000 strike (30.17 lakh contracts)
- Maximum Call Unwinding: 22,000 strike (34,575 contracts)
4) Nifty Put Options Data
- Highest Open Interest (OI):
- 22,000 strike (92.89 lakh contracts) – key support
- 22,500 strike (82.5 lakh contracts)
- 22,300 strike (72.31 lakh contracts)
- Maximum Put Writing:
- 22,500 strike (27.48 lakh contracts)
- 22,300 strike (24.47 lakh contracts)
- 22,400 strike (17.89 lakh contracts)
- Maximum Put Unwinding: 23,000 strike (4.62 lakh contracts)
5) Bank Nifty Call Options Data
- Highest Open Interest (OI):
- 51,000 strike (24.97 lakh contracts) – key resistance
- 50,000 strike (18.24 lakh contracts)
- 50,500 strike (14.73 lakh contracts)
- Maximum Call Writing:
- 49,000 strike (5.23 lakh contracts)
- 50,500 strike (3.17 lakh contracts)
- 50,000 strike (3.11 lakh contracts)
6) Bank Nifty Put Options Data
- Highest Open Interest (OI):
- 47,000 strike (15.03 lakh contracts) – key support
- 49,000 strike (12.59 lakh contracts)
- 48,000 strike (12.5 lakh contracts)
- Maximum Put Writing:
- 47,300 strike (1.63 lakh contracts)
- 47,800 strike (74,520 contracts)
- 47,700 strike (67,410 contracts)
7) Funds Flow (Rs Crore)
Foreign and domestic institutional investors’ activity will play a key role in market direction.
8) Put-Call Ratio (PCR)
- The Nifty PCR fell to 0.82 on February 21 from 0.9 in the previous session.
- A lower PCR below 0.7 suggests bearish sentiment, while a rise above 1 signals bullishness.
9) India VIX (Volatility Index)
- India VIX dropped by 1.04% to 14.53.
- A fall below 14 could provide comfort to bulls.
10) Long Build-up (24 Stocks)
- These stocks saw an increase in open interest (OI) and price, indicating buying interest.
11) Long Unwinding (101 Stocks)
- A decline in OI along with a fall in price suggests profit booking or weak sentiment.
12) Short Build-up (84 Stocks)
- Rising OI with a falling price points to fresh short positions being added.
13) Short-Covering (23 Stocks)
- A fall in OI with a price increase indicates shorts being covered.
14) High Delivery Stocks
- Stocks with a high share of delivery transactions indicate strong investor interest.
15) Stocks Under F&O Ban
- New Addition: Chambal Fertilisers and Chemicals
- Retained: Manappuram Finance
- Removed: None
Financial Ratios Snapshot
| Index | Current Level | Resistance | Support | Put-Call Ratio | India VIX |
|---|---|---|---|---|---|
| Nifty 50 | 22,796 | 23,013 | 22,612 | 0.82 | 14.53 |
| Bank Nifty | 48,981 | 49,560 | 48,475 | – | – |
Conclusion
The Nifty 50 and Bank Nifty continue to face selling pressure, with crucial support levels being tested. If Nifty 50 fails to hold above 22,700, a deeper correction could occur. However, a breakout above 23,100 might signal a reversal. Traders should closely monitor key levels, options data, and global cues before taking positions.
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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.