..... . VALI disclosures . .....: 09/10/26, Market Strategy for Today

Friday, October 9, 2026

09/10/26, Market Strategy for Today

The Nifty 50 remained firmly in the grip of bears on October 8, falling 1.64 percent and extending its southward journey for another session. Momentum indicators remained in bearish territory, while the index traded well below all key moving averages. Elevated oil prices, a weakening rupee, persistent FII outflows, and the India VIX moving above the 15 zone also weighed on market sentiment. If the Nifty 50 decisively breaks Thursday's low of 22,180, bears could target the psychological 22,000 mark, followed by 21,700, the April 2025 low. On the higher side, 22,400 may act as an immediate hurdle, followed by the 22,600-22,700 zone, according to experts.

Here are Important data points we have collated to help you spot profitable trades:

1) Key Levels For The Nifty50 (22,232)

Resistance based on pivot points: 22,497, 22,596, and 22,756

Support based on pivot points: 22,177, 22,078, and 21,918

Special Formation: The Nifty 50 hit an 18-month closing low and formed a long red candle on the daily timeframe, signalling strong bearish pressure. The 10-, 20-, 50-, 100- and 200-day EMAs were all sloping downward. The RSI remained in the super-bearish zone, falling below 30 to 27.55, while the MACD remained below the signal line, with the histogram showing an expanding red bar. Overall, these indicators point to continued bearish momentum and suggest that the index may remain under pressure in the near term.

2) Key Levels For The Nifty Bank (54,515)

Resistance based on pivot points: 54,899, 55,055, and 55,307

Support based on pivot points: 54,395, 54,239, and 53,987

Resistance based on Fibonacci retracement: 55,897, 57,285

Support based on Fibonacci retracement: 54,053, 52,784

Special Formation: The Bank Nifty came close to the previous week's closing level after falling 1 percent on Thursday. The banking index formed a long bearish candle on the daily charts and remained below all key moving averages, reflecting continued weakness. The RSI slipped below the 40 zone to 36.45, while the MACD, which had been trending higher towards its signal line, remained below the signal line. However, the MACD histogram continued to show easing bearish momentum for the sixth consecutive session. Overall, these indicators suggest that bearish pressure persists, although the momentum may be gradually easing.

3) Nifty 50 Call Options Data

According to the weekly options data, the maximum Call open interest was seen at the 22,700 strike (with 1.252 crore contracts). This level can act as a key resistance level for the Nifty in the short term. It was followed by the 22,500 strike (1.251 crore contracts) and 22,400 strike (1.06 crore contracts).

Maximum Call writing was observed at the 22,500 strike, which saw an addition of 1 crore contracts, followed by the 22,400 and 22,300 strikes, which added 98.66 lakh and 63.07 lakh contracts, respectively. There was hardly any Call unwinding seen in the 21,800-22,750 strike band.

4) Nifty50 Put Options Data:

On the Put side, the 22,000 strike holds the maximum Put open interest (with 1.03 crore contracts), which can act as a key support level for the Nifty in the short term. It was followed by the 21,800 strike (67.51 lakh contracts) and the 22,200 strike (64.11 lakh contracts).

The maximum Put writing was placed at the 22,000 strike, which saw an addition of 32.72 lakh contracts, followed by the 21,800 and 22,300 strikes, which added 26.07 lakh and 14.82 lakh contracts, respectively. The maximum Put unwinding was seen at the 22,600 strike, which shed 35.39 lakh contracts, followed by the 22,500 and 22,550 strikes, which shed 19.92 lakh and 13.03 lakh contracts, respectively.

5) Nifty Bank Call Options Data

According to the monthly options data, the maximum Call open interest was seen at the 56,000 strike, with 12.43 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 (11.68 lakh contracts) and the 55,500 strike (6.61 lakh contracts).

Maximum Call writing was observed at the 55,000 strike (with the addition of 3.2 lakh contracts), followed by the 56,000 strike (87,870 contracts) and 54,700 strike (86,580 contracts). The maximum Call unwinding was seen at the 55,100 strike, which shed 31,680 contracts, followed by the 55,200 and 55,300 strikes, which shed 17,610 and 7,800 contracts, respectively.

6) Nifty Bank Put Options Data:

On the Put side, the 55,000 strike holds the maximum Put open interest (with 10.64 lakh contracts), which can act as a key level for the index in the short term. This was followed by the 54,000 strike (6.55 lakh contracts) and the 56,000 strike (6.47 lakh contracts).

The maximum Put writing was placed at the 54,600 strike (which added 28,710 contracts), followed by the 53,400 strike (17,640 contracts) and 53,300 strike (15,780 contracts). The maximum Put unwinding was seen at the 54,500 strike, which shed 88,710 contracts, followed by the 55,200 and 55,300 strikes, which shed 88,050 and 58,320 contracts, respectively.

7) Funds Flow (Rs in Crores)

8) Put-Call Ratio:

The Nifty Put-Call ratio (PCR), which indicates the mood of the market, dropped to 0.73 on October 8, compared to 0.89 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.

Written by Sunil Shankar Matkar

Source: Network18

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Trade Cycles

The four important features of Trade Cycle are (i) Recovery, (ii) Boom, (iii) Recession, and (iv) Depression!

The trades cycle or business cycle are cyclical fluctuations of an economy. A full trade cycle has got four phases: (i) Recovery, (ii) Boom, (iii) Recession, and (iv) depression. The upward phase of a trade cycle or prosperity is divided into two stages—recovery and boom, and the downward phase of a trade cycle is also divided into two stages—recession and depression.

Phases of Trade Cycle:

The phases of trade cycle are explained with a diagram:

(1) Recovery:

In the early period of recovery, entrepreneurs increase the level of investment which in turn increases employment and income. Employment increases purchasing power and this leads to an increase in demand for consumer goods.

As a result, demand for goods will press upon their supply and it shall, thereby, lead to a rise in prices. The demand for consumer’s goods shall encourage the demand for producer’s goods.

The rise in prices shall depend upon the gestation period of investment. The longer the period of investment, the higher shall be the price rise. The rise of prices shall bring about a change in the distribution of income. Rent, wages, interest do not rise in the same proportion as prices.

Consequently, the margin of profit improves. The wholesale prices rise more than retail prices. The prices of raw materials rise more than the prices of semi-finished goods and the prices of semi-finished goods use more than the prices of finished goods.

(2) Boom:

The rate of investment increases still further. Owing to the spread of a wave of optimism in business, the level of production increases and the boom gathers momentum. More investment is possible only through credit creation. During a period of boom, the economy surpasses the level of full employment and enters a stage of over full employment.

(3) Recession:

The orders for raw materials are reduced on the onset of a recession. The rate of investment in producers’ goods industries and housing construction declines. Liquidity preference rises in society and owing to a contraction of money supply, the prices falls. A wave of pessimism spreads in business and those markets which were sometime before sellers markets become buyer’s markets now.

(4) Depression:

The main feature of a depression is a general fall in economic activity. Production, employment and income decline. The prices fall and the main factor responsible for it is, a fall in the purchasing power.

The distribution of national income changes. As the costs are rigid in nature, the margin of profit declines. Machines are not used to their full capacity in factories, because effective demand is much less. The prices of finished goods fall less than the prices of raw materials.

✳Reality Tips to Traders

1)Trading in the stock market is a marathon. 2)Protecting your capital is key. (Learn to protect first) 3)Making 0 on the day is better than losing 50k 4)Losses happen; they are part of this business. 5)It’s not you vs. the market. It’s you VS you. 6)You are your biggest enemy; learn to be mentally disciplined. 7)Don’t follow the majority; follow the correct path. 8)Traders without a stop loss end up not being traders for long. 9)There is always another trade. 10)The big money is made waiting for the right set-ups. 11)Waiting for the right trade is the most powerful strategy. 12)It is better to cut a loss than to wait to be proven right. 13)Position sizing can make or break you. 14)Worry about the downside before you even think about the upside. 15)Don’t listen to headlines

..BANKING TERMINOLOGY

There are various types of Banks: PSU Banks, Private Banks, Co-operative/Regional Banks, Small Finance Banks and Foreign Banks. When you deposit money in a bank, let's say the bank gives you an interest rate of 4%. But when the bank lends out this money, they lend it out at say, 12%. The difference of 8% in the above scenario is effectively the profit of the bank! The loans that do not pay interest for 90 days are known as Non-performing Assets. Banks have to provide for such bad loans. Structure of a Bank Asset for a Bank: The asset portion of a bank's capital includes cash, government securities, and interest-earning loans (e.g., mortgages, letters of credit, and inter-bank loans). Liabilities for a Bank: The bank's main liabilities are its capital (including cash reserves and, often, subordinated debt) and deposits. The latter may be from domestic or foreign sources (corporations and firms, private individuals, other banks, and even governments). Banks are required to maintain Liquidity with the Reserve Bank of India: SLR (Statutory Liquidity Ratio): It is the money a bank needs to preserve in the form of cash, gold or government Bonds before providing credit customers. This limitation is added by RBI on banks to make funds available to customers on-demand at your earliest convenience. Banks are required to maintain SLR at 18%. CRR (Cash Reserve Ratio): Banks are required to hold a certain proportion of their deposits in the form of cash. Banks don’t hold these as cash with themselves, but deposit such amounts with RBI / currency chests. CRR rate is at 4.5% currently. Repo Rate: The rate at which the RBI lends short-term money to the banks. The RBI through its Monetary Policy committee changes the repo rate to balance growth and Inflation. Reverse Repo rate: The rate at which banks park their short-term excess liquidity with the RBI. Now let us understand various terminologies for Banks Net Interest Income (NII): This is the spread the bank makes on its lending. It is calculated as Interest Income – Interest Expended Net Interest Margin (NIM): This is the spread the bank makes on its lending. It is the earning which is left after deducting the cost paid to depositors from its yields on Loans. This is denoted in % terms. The formula is Yield on Loans – Cost of funds Capital Adequacy Ratio (CAR): The capital adequacy ratio (CAR) is a measure of a bank's available capital expressed as a percentage of a bank's risk-weighted credit exposures. Essentially, it is the Capital that is available to lend. Tier I Capital – In simple words this capital is freely available with the bank to lend out. Tier II Capital- This is the capital tied up somewhere and is less freely available to lend. In case of an adverse event, the bank can use this capital to lend. Under Basel III norms, a bank’s tier 1+tier 2 capital must be a minimum of 8% of its risk-weighted holdings. The minimum capital adequacy ratio, also including the capital conservation buffer, is 10.5%. Current Account Saving Account (CASA)- There is no interest paid on the Current Account and a small interest rate is paid on a savings account. The combination of both is called CASA which shows the liabilities of the bank on which it pays relatively less interest. Deposits: Bank deposits are a savings product that customers can use to hold an amount of money at a bank for a specified length of time. In return, the financial institution will pay the customer the relevant amount of interest, based on how much they choose to deposit and for how long. Now let us come to NPA. Gross NPA (GNPA): It is the total loans on which no payment has been paid for 90 days or more. GNPA % is usually shown in each Bank’s quarterly results. The percentage is basically the GNPA amount as a % of the total advances. Slippages: Slippages denote the fresh amount of loans that have turned bad in a year. The slippage ratio of a bank is calculated as Fresh accretion of NPAs during the year /Total standard assets at the beginning of the year multiplied by 100. Provisioning Coverage Ratio (PCR): This is the ratio of provisioning to GNPA and indicates the extent of funds a bank has kept aside to cover loan losses. For Instance, a company has GNPAs of Rs 100 and they have set aside 50 Rs, then the PCR is 50%. Net NPA (NNPA): The total figure left after deducting provisions made for bad loans from GNPA. (GNPA – Provisions+upgrades/writeoffs = NNPA) Special Mention Account (SMA) SMA-0 is a category in which stress with respect to the principal and interest has remained overdue for a period of 0 to 30 days. SMA-1 is a category in which stress with respect to the principal and interest has remained overdue for a period of 30-60 days. SMA-2 is a category in which stress with respect to the principal and interest has remained overdue for a period of 60-90 days

..... . VALI disclosures . .....

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Friday, October 9, 2026

09/10/26, Market Strategy for Today

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09/10/26, Technical Study and Market Expectations for the Next Week

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