Trade Setup for February 24: Nifty 50 shows bearish trend, trades below key moving averages
Trade Setup for February 24: Nifty 50 forms a bearish candle
The Nifty 50 continued its downtrend for the fourth straight session, hitting a new low for 2025 on February 21. The index closed half a percent lower, and sentiment remained weak on Friday as it approached the critical support level of 22,700. If Nifty breaks below this, the decline may extend to 22,600, the trendline support. A steeper correction is possible beyond this level. On the upside, any rebound will face resistance at 23,000–23,100. A sustained move above 23,200 could signal a fresh uptrend, according to market experts.
Key Levels for Nifty 50 (22,796)
Resistance levels: 22,889, 22,936, 23,013 (based on pivot points)
Support levels: 22,736, 22,688, 22,612 (based on pivot points)
Special Pattern: The Nifty 50 formed a bearish candlestick pattern, signaling volatility. The index is trading below all key moving averages and momentum indicators (MACD, RSI) suggest a bearish trend.
Key Levels for Bank Nifty (48,981)
Resistance levels: 49,225, 49,353, 49,560
Support levels: 48,810, 48,682, 48,475
Fibonacci Resistance: 49,403, 50,371
Fibonacci Support: 47,866, 46,078
Special Pattern: Bank Nifty formed a similar pattern as Nifty and is trading near the lower Bollinger Band, indicating bearish dominance.
Options Data Insights
Nifty Call Options
Maximum Open Interest: 23,000 strike (1.04 crore contracts)
Highest Call Writing: 23,100 strike (54.92 lakh contracts)
Key Resistance: 23,000–23,100 zone
Nifty Put Options
Maximum Open Interest: 22,000 strike (92.89 lakh contracts)
Highest Put Writing: 22,500 strike (27.48 lakh contracts)
Key Support: 22,000–22,500 zone
Bank Nifty Call Options
Maximum Open Interest: 51,000 strike (24.97 lakh contracts)
Highest Call Writing: 49,000 strike (5.23 lakh contracts)
Bank Nifty Put Options
Maximum Open Interest: 47,000 strike (15.03 lakh contracts)
Highest Put Writing: 47,300 strike (1.63 lakh contracts)
Market Indicators
Put-Call Ratio (PCR): Fell to 0.82 from 0.9, indicating bearish sentiment.
India VIX (Volatility Index): Declined 1.04% to 14.53. A further drop below 14 may provide comfort for bulls.
Stock Trends
Long Build-Up: 24 stocks saw an increase in open interest (OI) and price.
Long Unwinding: 101 stocks saw a fall in OI and price.
Short Build-Up: 84 stocks saw an increase in OI with a price decline.
Short-Covering: 23 stocks saw a price increase with a decrease in OI.
High Delivery Stocks: Stocks with high delivery volumes indicate investment interest over trading activity.
Stocks Under F&O Ban
Newly Added: Chambal Fertilisers and Chemicals
Retained: Manappuram Finance
Market sentiment remains weak, and traders should watch for key support and resistance levels while keeping an eye on global cues and economic data. Always consult certified financial experts before making investment decisions.
