Trade Setup for January 31: Key market insights before the opening bell

The market continued its upward trajectory, as the Nifty 50 index marked its third consecutive session with higher highs and higher lows. It closed with a modest gain of 0.4%, driven by solid volume, on January 30—expiry day for monthly F&O contracts. The index tested the 20-day Exponential Moving Average (EMA) and the mid-line of the Bollinger Bands, which stands at 23,300. A decisive close above this level is crucial for further upward movement towards 23,400 (50-week EMA), followed by 23,600. However, consolidation may prevail if the index stays below this level, with 23,000 acting as key support amid elevated market volatility.

Here are the 15 most important data points to watch out for before the opening bell:

1. Key Levels for Nifty 50 (23,250)

Resistance Levels: 23,307, 23,350, 23,420

Support Levels: 23,167, 23,124, 23,054

2. Key Levels for Bank Nifty (49,312)

Resistance Levels: 49,407, 49,500, 49,651

Support Levels: 49,106, 49,013, 48,862

3. Nifty Call Options Data

Maximum Call open interest at 24,000 (32.45 lakh contracts), indicating resistance.

Maximum Call writing seen at 24,000, followed by 23,300 and 23,200 strikes.

4. Nifty Put Options Data

Maximum Put open interest at 23,000 (30.8 lakh contracts), providing support.

Maximum Put writing at 23,200, followed by 23,300 and 22,500 strikes.

5. Bank Nifty Call Options Data

Maximum Call open interest at 49,000 (7.02 lakh contracts), a key resistance level.

Maximum Call writing at 50,000, with the 49,000 and 49,500 strikes following closely.

6. Bank Nifty Put Options Data

Maximum Put open interest at 49,000 (9.38 lakh contracts), indicating support.

Maximum Put writing at 49,000, followed by 49,500 and 50,000 strikes.

7. Funds Flow

Information on institutional buying and selling patterns affecting market movement.

8. Put-Call Ratio (PCR)

PCR dropped to 0.97, signaling a shift from bullish to a more neutral market sentiment.

9. India VIX

India VIX dropped 6.71% to 17.39, indicating decreased volatility but staying above key moving averages, which still suggests caution for bulls.

10. Long Build-up

11 stocks showed increased open interest with rising prices, indicating long positions are building up.

11. Long Unwinding

76 stocks experienced long unwinding, marked by a decline in open interest and price.

12. Short Build-up

8 stocks saw an increase in open interest alongside falling prices, suggesting short positions.

13. Short-Covering

132 stocks saw short-covering, characterized by a decrease in open interest with rising prices.

14. High Delivery Trades and High Rollovers

Key stocks with a significant percentage of delivery trades, reflecting investor interest.

Stocks with the highest rollovers on expiry day indicate strong market participation.

15. Stocks Under F&O Ban

No stocks were added to the F&O ban list for the day, signaling normal trading activity.

Disclaimer: The market analysis is based on data and expert opinions, and investors are advised to consult certified professionals before making any investment decisions.