Chapter 1: Opening Zone
On September 15, Nifty opened with a slight gap-up at 25,118.90 (+4.90 points), rose to a high of 25,138.45, fell to a low of 25,048.75, and closed at 25,069.20, down 44.80 points (-0.18%) for the session. The volatility index (VIX) spiked 2.77%, suggesting increased trader caution.
Chapter 2: Early Movement
In the opening 15 minutes, delta was positive (5,100) but with very low volume participation and only 1.35% delta, indicating tepid buying. The market quickly rejected from yesterday’s volume point of control (VPOC), trapping early buyers. By 10:40 am, a bearish fair value gap (FVG) formed, reinforcing negative sentiment. Nifty tried to reclaim lost ground, targeting sell-side liquidity, but selling pressure resumed and the index gravitated toward the key 25,000 reference.
Bonus Point
Nifty remained stuck between 25,150 and 25,000 throughout the session. If price does not break this range in the first hour tomorrow, it is likely to remain consolidated again.
Chapter 3: Open Interest and Option Chain
Option data shows substantial call open interest at 25,100 and strong put open interest at 25,000—indicating traders expect prices to oscillate inside this band. This supports your approach of using short straddles and strangles as the option premiums remain elevated in a range.
Chapter 4: My Trade
Today, I traded a short straddle at 25,000 and a short strangle, coupled with other sell-buy combinations to capitalize on range-bound action. This approach profits if the index stays between 25,000–25,200, in line with OI data and prominent resistance. If the range is broken, I will hedge to limit risk as per market direction. This disciplined method keeps risk controlled even on volatile days.
Chapter 5: Sectoral Movement
Infra stocks shone as the session’s top performers, while pharma stocks lagged, confirming sectoral rotation in a consolidating market.
Chapter 6: Global News Impact
International news reflected possible tailwinds for the market:
- India-EU trade talks now enter a critical phase, with the goal to finalize a deal by year-end.
- Domestically, a Rs 6 lakh crore surge this month traces back to Prime Minister Modi’s GST cuts, which boosted stock market sentiment.
Why Was the Market Down Today?
Nifty struggled as sellers dominated from the open, trapping buyers on weak rallies and enforcing fresh downside moves. Despite positive global cues, profit-taking and expiry caution contributed to the range-bound, slightly negative close. Rising VIX indicates that traders are bracing for higher volatility ahead, possibly linked to key resistance at 25,150 and weekly expiry pressures. The inability to breakout above 25,150 or break down below 25,000 confirms a market balanced between cautious bulls and resolute bears.
Actionable Technical Levels
- Immediate Resistance: 25,150
- Major Support: 25,000
- Key Range: 25,000–25,200
- FIIs/DIIs: Watch out for institutional flows near expiry.
Disclaimer
This blog is for educational purposes only. Author is not SEBI registered, and any trading or P&L displayed is for transparency, not promotion. Securities markets are risky; consult a financial advisor before investing. No broker or product is endorsed or promoted.
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