Chapter 1: Opening Zone
On September 16, Nifty opened almost flat at 25,073.60 (+4.40 points) but quickly transformed into a trending session, touching a high of 25,261.40, a low of 25,070.45, and closing strong at 25,239.10, up 169.90 points (0.68%). The volatility index (VIX) fell by 1.25%, reflecting calm sentiment and reduced fear as the rally progressed.
Chapter 2: Early Movement
Early market action suggested buyer strength, with cumulative delta reaching 25% of cumulative volume in the first 15 minutes—an unusually bullish order flow. The market kept making higher highs, and a buying tail formed early, leading to strong momentum as Nifty surged past resistance at 25,200. Aggressive buying kept sentiment positive throughout the day, culminating in an impressive close above 25,200—solid trend day behavior with buyers in full control.
Bonus Point: Price Levels
- POC: 25,177
- Value Area High: 25,210
- Value Area Low: 25,140
- Support: 25,000
- Resistance: 25,400
These reference points help identify profit-taking zones and future rally potential.
Chapter 3: Open Interest
The options chain showed significant call open interest at 25,200 and high put open interest at 25,250, offering clues for near-term expiry movements. This setup signals both bullish momentum and the potential for volatility spikes if levels are challenged in coming sessions.
Chapter 4: My Trade
Carrying forward positional trades from last week, I had minimal profit from the rally. However, adept scalping enabled me to capture intraday moves. Simultaneously, I initiated a 25,000 short straddle with a protective hedge to optimize premium decay and manage overnight risk. I plan to dynamically adjust hedges, depending on Nifty’s direction in the upcoming days, keeping risk contained in a trending environment.
Chapter 5: Sectoral Movement
Auto stocks emerged as leaders, benefiting from bullish flows, while consumer stocks lagged. Such sectoral rotations are common in rally-driven sessions and help pinpoint future outperformers.
Chapter 6: Global News
- A breakthrough for the India-US trade deal remains unlikely unless 25% oil-linked tariffs are lifted, as per GTRI.
- The rupee firmed up as the dollar stayed defensive ahead of a widely expected Fed rate cut, supporting Indian equity sentiment.
Why Did The Market Rally Today?
Nifty’s advance was driven by clear bullish order flow, with buyers persistently absorbing supply and pushing prices higher. Lower volatility magnified the confidence in the trend, while supportive macro factors, strong auto sector moves, and technical breakouts above 25,200 fueled momentum. Despite carrying positional trades, effective intraday adjustments and tactical short straddle management helped optimize results and control risk.
Disclaimer
This blog is for educational purposes only. The author is not SEBI registered, and P&L shared reflects transparency, not endorsement. Securities market are risky; always consult a financial advisor before investing. No broker or course is promoted.
Comments are closed