Trade Setup for February 25: 15 Key Things to Know Before the Opening Bell

Trade Setup for February 25 : The Indian stock market witnessed a sharp decline on February 24, with the Nifty 50 falling 1% to its lowest level in over eight and a half months. This marks the fifth consecutive day of losses, with the index breaking below the crucial support of 22,700. Market sentiment has turned bearish as the Nifty now trades near the lower boundary of the Bollinger Bands, increasing the likelihood of further downside.

Experts suggest that any rebound from current levels may be sold into, with the next critical support at 22,400. If the index sustains below this level, it could lead to additional downward pressure. On the upside, resistance is expected around the 22,700-22,800 zone.

To help traders navigate the market effectively, here are 15 key data points:

1. Key Levels for Nifty 50 (22,553)

Resistance Levels: 22,637, 22,672, and 22,729
Support Levels: 22,523, 22,488, and 22,431

Technical Outlook: The Nifty formed a bearish candlestick pattern on the daily charts, signaling weakness. Momentum indicators such as the RSI (29.74) have entered oversold territory, while the MACD remains in a negative crossover.

2. Key Levels for Bank Nifty (48,652)

Resistance Levels: 48,739, 48,849, and 49,027
Support Levels: 48,383, 48,272, and 48,094
Fibonacci Resistance Levels: 49,397, 50,372
Fibonacci Support Levels: 47,880, 46,078

Technical Outlook: Bank Nifty formed a small-bodied bullish candle resembling a Dragonfly Doji, a potential reversal pattern. However, RSI and MACD remain weak, signaling continued pressure.

3. Nifty Call Options Data

Maximum Open Interest: 23,000 strike (1.38 crore contracts)
Major Resistance Levels: 22,800 (1.32 crore contracts), 23,500 (1.07 crore contracts)
Maximum Call Writing: 22,600 strike (86.26 lakh contracts)
Maximum Call Unwinding: 23,100 strike (-26.41 lakh contracts)

4. Nifty Put Options Data

Maximum Open Interest: 22,500 strike (96.48 lakh contracts)
Major Support Levels: 22,000 (88.36 lakh contracts), 22,600 (84.78 lakh contracts)
Maximum Put Writing: 22,600 strike (46.53 lakh contracts)
Maximum Put Unwinding: 22,800 strike (-21.81 lakh contracts)

5. Bank Nifty Call Options Data

Maximum Open Interest: 50,000 strike (22.69 lakh contracts)
Major Resistance Levels: 50,500 (17.94 lakh contracts), 49,000 (16.16 lakh contracts)
Maximum Call Writing: 48,500 strike (4.99 lakh contracts)

6. Bank Nifty Put Options Data

Maximum Open Interest: 48,500 strike (14.93 lakh contracts)
Major Support Levels: 47,000 (13.8 lakh contracts), 48,000 (12.91 lakh contracts)
Maximum Put Writing: 48,500 strike (5.22 lakh contracts)

7. Funds Flow (Rs Crore)

FIIs Net Selling: Rs XX crore
DIIs Net Buying: Rs XX crore

8. Put-Call Ratio (PCR)

Nifty PCR: 0.71 (down from 0.82 in the previous session)
Interpretation: A PCR below 0.7 suggests higher Call selling than Put selling, indicating bearish sentiment.

9. India VIX (Volatility Index)

Current Level: 14.44 (-0.60%)
Trend: Volatility has been declining for five days, remaining below key moving averages. A break below 14 could support bullish sentiment.

10. Long Build-up (22 Stocks)

Stocks with increased open interest and rising prices indicate a bullish stance.

11. Long Unwinding (93 Stocks)

Stocks witnessing a decline in both price and open interest indicate profit booking or trend reversal.

12. Short Build-up (74 Stocks)

An increase in open interest with a falling price suggests a bearish sentiment in these stocks.

13. Short-Covering (43 Stocks)

A decrease in open interest along with a price increase suggests traders closing short positions.

14. High Delivery Trades

Stocks witnessing a high share of delivery trades indicate strong investor interest rather than speculative activity.

15. Stocks Under F&O Ban

Stocks Retained in Ban: Chambal Fertilisers and Chemicals, Manappuram Finance
New Additions: None
Stocks Removed: None

Financial Ratios Snapshot

Index	Last Close	Resistance Levels	Support Levels	RSI	MACD	PCR	India VIX
Nifty 50	22,553	22,637, 22,672, 22,729	22,523, 22,488, 22,431	29.74 (Oversold)	Negative Crossover	0.71	14.44 (-0.60%)
Bank Nifty	48,652	48,739, 48,849, 49,027	48,383, 48,272, 48,094	Weak	Negative Crossover	–	–

Market Outlook for February 25

The overall trend remains weak, with the Nifty 50 and Bank Nifty struggling at key support levels. The market could see some relief rallies, but experts believe they might be short-lived, as selling pressure is expected at higher levels.

Bullish Case: If Nifty reclaims 22,700-22,800, it could see short-covering and further upside.
Bearish Case: A breach below 22,400 could trigger another round of selling, dragging the index lower.

Investors should remain cautious, focus on risk management, and watch key levels before making trading decisions. Stay tuned for more 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.