Trade Setup for October 22: Top 15 things to know before the opening bell
If the Nifty 50 manages to hold above the Bollinger Bands’ midline at 22,790 on a closing basis, a rebound toward the 22,900–23,000 zone is possible. However, a break below 22,790 could increase the likelihood of a further decline toward 22,600–22,500.
The Nifty 50 erased 1.33 percent from its intraday high of 23,120 to close 0.34 percent lower on October 21, extending its losses for a second consecutive session. The persistently weak broader market structure and elevated oil prices are likely to keep bearish sentiment intact. According to experts, if the index manages to hold above the Bollinger Bands’ midline at 22,790 on a closing basis, a rebound toward the 22,900–23,000 zone is possible.
The 23,200 level remains a crucial hurdle for any further sharp upside. However, a break below 22,790, followed by sustained trading below this level, could increase the likelihood of a further decline toward 22,600–22,500. Here are 15 data points we have collated to help you spot profitable trades: 1) Key Levels For The Nifty 50 (22,811) Resistance based on pivot points: 23,041, 23,152, and 23,332
Support based on pivot points: 22,681, 22,570, and 22,390 Special Formation: The Nifty 50 formed a long bearish candle with sizeable upper and lower shadows on the daily chart, indicating persistent weakness amid volatility. After falling below the 20-day EMA, the index traded below all key moving averages, although it managed to hold marginally above the midline of the Bollinger Bands, which generally acts as a support level.
The RSI declined to 46.27 but remained above its signal line. Meanwhile, the MACD maintained its uptrend above the reference line, although the green histogram bar contracted after expanding over the previous four sessions. Overall, these technical indicators suggest that bearish momentum is strengthening, while the index is attempting to hold near-term support, leaving room for a potential recovery if buying interest emerges.
2) Key Levels For The Bank Nifty (54,977) Resistance based on pivot points: 55,628, 55,904, and 56,351 Support based on pivot points: 54,733, 54,457, and 54,009 Resistance based on Fibonacci retracement: 55,657, 56,238 Support based on Fibonacci retracement: 55,049, 54,053 Special Formation: The Bank Nifty fell 0.92 percent and formed a long bearish candle on the daily chart, slipping decisively below its short-term moving averages and indicating rising selling pressure.
The index is now trading below all key moving averages as well as the midline of the Bollinger Bands, signalling a weakening technical structure. The RSI declined to 43.51 and is nearing a bearish crossover. Meanwhile, the MACD moved lower but remained above its signal line, while the green histogram bar contracted for the second consecutive session. Overall, these technical indicators point to increasing bearish momentum.
3) Nifty Call Options Data According to the monthly options data, the maximum Call open interest was seen at the 23,000 strike (with 1.62 crore contracts). This level can act as a key resistance level for the Nifty in the short term. It was followed by the 23,200 strike (1.11 crore contracts) and 23,100 strike (1.01 crore contracts). Maximum Call writing was observed at the 23,000 strike, which saw an addition of 66.07 lakh contracts, followed by the 22,800 and 23,100 strikes, which added 53.81 lakh and 52.01 lakh contracts, respectively.
The maximum Call unwinding was seen at the 22,550 strike, which shed 56,875 contracts, followed by the 22,300 strike, which shed 16,250 contracts. 4) Nifty Put Options Data On the Put side, the 22,500 strike holds the maximum Put open interest (with 84.99 lakh contracts), which can act as a key support level for the Nifty in the short term. It was followed by the 22,700 strike (71.22 lakh contracts) and the 23,000 strike (60.66 lakh contracts).
The maximum Put writing was placed at the 22,700 strike, which saw an addition of 18.43 lakh contracts, followed by the 22,750 and 22,600 strikes, which added 14.79 lakh and 13.62 lakh contracts, respectively. The maximum Put unwinding was seen at the 23,000 strike which shed 6.92 lakh contracts, followed by the 23,100 and 22,850 strikes, which shed 3.95 lakh and 2.02 lakh contracts, respectively.
5) Bank Nifty Call Options Data According to the monthly options data, the maximum Call open interest was concentrated at the 56,000 strike, with 16.15 lakh contracts. This can act as a key resistance level for the index in the short term. It was followed by the 55,000 strike (12.63 lakh contracts) and the 55,500 strike (11.55 lakh contracts). Maximum Call writing was observed at the 55,000 strike (with the addition of 3.97 lakh contracts), followed by the 56,000 strike (1.53 lakh contracts) and 54,900 strike (1.33 lakh contracts).
The maximum Call unwinding was seen at the 54,200 strike, which shed 8,070 contracts, followed by the 53,500 and 53,800 strikes, which shed 3,960 and 2,760 contracts, respectively. 6) Bank Nifty Put Options Data On the Put side, the 55,000 strike holds the maximum Put open interest (with 12.61 lakh contracts), which can act as a key level for the index in the short term. This was followed by the 54,000 strike (7.61 lakh contracts) and the 55,500 strike (7.51 lakh contracts).
The maximum Put writing was placed at the 54,800 strike (which added 2.03 lakh contracts), followed by the 54,000 strike (82,080 contracts) and 53,800 strike (76,110 contracts). The maximum Put unwinding was seen at the 55,500 strike, which shed 3.28 lakh contracts, followed by the 54,500 and 56,000 strikes, which shed 1.91 lakh and 86,820 contracts, respectively. 7) Funds Flow (Rs crore) The Nifty Put-Call ratio (PCR), which indicates the mood of the market, fell to 0.78 on October 21, compared to 0.93 in previous session.
The increasing PCR, or being higher than 0.7 or surpassing 1, means traders are selling more Put options than Call options, which generally indicates the firming up of a bullish sentiment in the market. If the ratio falls below 0.7 or moves towards 0.5, then it indicates selling in Calls is higher than selling in Puts, reflecting a bearish mood in the market. India VIX, the market’s fear gauge, surged 6.11 percent to close at 15.67, its highest closing level since June 8, signalling rising nervousness among market participants and increased discomfort for bulls.
A further rise above the 16–17 zone, followed by sustained trading at these levels, could pose a significant risk to bullish sentiment. 10) Long Build-up (13 Stocks) A long build-up was seen in 13 stocks. An increase in open interest (OI) and price indicates a build-up of long positions. 11) Long Unwinding (50 Stocks) 50 stocks saw a decline in open interest (OI) along with a fall in price, indicating long unwinding.
12) Short Build-up (138 Stocks) 138 stocks saw an increase in OI along with a fall in price, indicating a build-up of short positions. 13) Short-Covering (17 Stocks) 17 stocks saw short-covering, meaning a decrease in OI, along with a price increase. 14) High Delivery Trades Here are the stocks that saw a high share of delivery trades. A high share of delivery reflects investing (as opposed to trading) interest in a stock.
15) Stocks Under F&O Ban Securities banned under the F&O segment include companies where derivative contracts cross 95 percent of the market-wide position limit. Stocks added to F&O ban: Nil Stocks retained in F&O ban: Ambuja Cements, Kaynes Technology India, SAIL Stocks removed from F&O ban: Nil
